The Bank of England has cut interest rates from 4.25% to 4%.
This marks the fifth reduction since August last year, when rates started steadily coming down from a peak of 5.25%.
Bank officials indicated that the economy is still likely to have grown by 0.1% over the second quarter, and predicted this will pick up further through the year amid hopes that reduced interest rates will encourage spending.
Meanwhile, inflation is expected to accelerate in the coming months, putting more pressure on household budgets.
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