Interest rates are widely expected to be cut on Thursday, with further falls predicted for later in the year. Analysts say a cut to 4.25% from 4.5% by the Bank of England is highly likely, although no change or a bigger reduction remain possibilities.

The BoE expects the economy to grow this year by 1%, a bit more than February's forecast of 0.75%, thanks to a strong end to 2024 and robust official data at the start of 2025. It said that first-quarter growth bounce looked erratic, however, and estimated the underlying quarterly growth rate at just 0.1%.

Bank of England cuts main interest rate by 0.25% to 4.25% in face of US tariffs uncertainty.