The Bank of England is expected to cut interest rates later as it comes under pressure to boost the UK economy.
Analysts predict the benchmark rate will be cut from 4.75% to 4.5%, which would be the third reduction since summer.
The hopes of a cut rose after the inflation rate fell in December to 2.5%, and traders now predict policymakers will reduce borrowing costs in the wake of official figures.
Economic uncertainty has been heightened since the US president Donald Trump threatened to introduce tariffs on goods.
However its still expected that borrowing costs will be lowered amid concerns about growth and rising job cuts.
Kathleen Brooks, research director at XTB, said: “The Bank of England is likely to justify the move, even though inflation remains above target, due to a sluggish economy and a softening in the labour market in recent months.”
FTSE 100
The UK's flagship share index, the FTSE 100, was up 108-points at 8,679 shortly after opening this morning.
Brent crude oil futures were up 0.11%, trading at $74.76 a barrel.
Companies reporting today
06-Feb | |
|---|
Amazon* | Q4 Results |
Anglo American* | Q4 Production Report |
AstraZeneca* | Full Year Results |
Compass Group* | Q1 Trading Statement |
Eli Lilly* | Q4 Results |
Syncona | Q3 Results |
Watches of Switzerland Group | Q3 Trading Statement |