Financial markets are betting the Bank of England will cut interest rates next year to avoid recession.
The bank is widely expected to leave borrowing costs unchanged when its Monetary Policy Committee meets later today. It has warned that rates need to remain high for a prolonged period to tackle stubbornly high inflation.
But money markets have moved to price in four quarter-point cuts to interest rates starting from the summer, anticipating the base rate will be slashed from 5.25% to as low as 4.25% by the end of 2024.
