Bank of England says UK inflation has peaked after leaving rates at 4%; US job cuts jump as firms turn to AI – as it happened

Economists predict UK rate cuts in December, after narrow vote to hold Bank Rate at 4% today

The pound is trading near a seven-month low this morning, as the City awaits the Bank of England's decision on interest rates.

Sterling is up just 0.1% against the US dollar at $1.3064, having threatened to fall below $1.30 earlier this week for the first time since April.

Yet fresh dovish signals from the BoE today could validate further downside, keeping momentum stretched and positioning skewed.

There's obviously a list of possible tax measures, but raising taxes on banks is a long way down that list," said one person briefed on her thinking.

Another person close to the process said: She is not minded to do this." A third person said: Banks are already paying a lot of tax. We aren't going to do it."