Bank of England braced for knife-edge interest rate decision

Markets predict quarter-point cut to 5% when policymakers' decision is announced on Thursday

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The Bank of England is braced for a knife-edge decision on interest rates as policymakers consider whether to cut borrowing costs for the first time since the start of the Covid pandemic.

After a sharp fall in inflation this year, Threadneedle Street is poised for a first reduction in borrowing costs since ratcheting up interest rates from a record low of 0.1% in December 2021 to the current level of 5.25%.