The Bank of England has cut interest rates for a second time this year and signalled that further reductions are likely.
Rates were set at 4.75%, down 0.25 percentage points from 5%, their lowest point in more than a year.
The central bank's monetary policy committee (MPC) that sets the level of borrowing costs voted in favour to cut the base rate on Thursday.
Andrew Bailey, governor of the Bank of England, said: “If the economy evolves as we expect it’s likely that interest rates will continue to fall gradually from here.”
He added, however: “We need to make sure inflation stays close to target, so we can’t cut interest rates too quickly or by too much.”
Chancellor Rachel Reeves welcomed the cut but said she is "under no illusion about the scale of the challenge facing households."
According to the latest market curve, investors think the Bank will lower borrowing cots two or three times next year.
The pound strengthened 0.88% against the US dollar to $1.299 and rose by 0.17% against the euro to €1.202.
FTSE 100
The UK's flagship share index, the FTSE 100, was down 26-points at 8,140 shortly after opening this morning.
Brent crude oil futures were down 0.78%, trading at $75.04 a barrel.
Companies reporting today
International Consolidated Airlines Group* | Q3 Results |
Rightmove | Q3 Trading Statement |
Vistry* | Q3 Trading Statement |