The Bank of England looks likely to cut interest rates next week, when it could also nudge investors to expect faster reductions than they currently predict as the economy flatlines.

Rate-setters are likely to signal a cautious approach for the remainder of the year given lingering price pressures in the economy.

The Bank of England is expected to cut interest rates when it meets later this week, which could lead to further mortgage rate reductions.

Markets have raised the prospect that the Bank of England will cut the base rate by up to four times this year, as fears of a global trade war rise.   US President Donald Trump has said he would impose tariffs of 25% on Mexico,

The Bank of England is expected to cut interest rates from 4.75% to 4.5% next week in a move that could have wide-reaching consequences for savers, borrowers and retirees

The Bank of England will reveal its first interest rate decision of the year on Thursday, against a backdrop of stubborn inflation and sluggish economic growth.

Investors added to bets on Bank of England interest rates cuts and short-term government bond yields hit a three-month low as global markets reeled on Monday after U.S. President Donald Trump's announcement of import tariffs on trading partners.

Rate-setters are all but certain to announce a cut from 4.75% to 4.5% at the next Monetary Policy Committee meeting on Thursday.