Experts are predicting a rate cut to 4.5% – but signs of rising inflation leave the Bank walking ‘a tightrope’ for future reductions this year.

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.

The Bank of England faces a "very challenging" outlook as it navigates the impact of its own management of the money supply.

Interest rates are expected to be cut by the Bank of England later, in a move closely watched by households and economists. Analysts predict the benchmark rate will be cut from 4.75% to 4.5%, as the Bank comes under pressures to boost the UK economy which has been showing slow growth.

A CNBC report revealed that economists are betting on the Bank of England cutting rates by 25 basis points from 4.75% to 4.5% in the Thursday Monetary Policy Committee meeting. The expected rate cuts come as the UK economy continues to stagnate,