Loan costs are established even more, since the Bank of England contains stagnant growth and the increase in unemployment, experts have predicted.
Most economists think that the Bank's monetary policy committee (MPC) will reduce interest rates by 0.25 percentage points to 4% on Thursday.
It could release the pressure for some mortgage holders amid the hope that the cheapest offers enter the market if the bank base rate is reduced more.
Interest rates have been constantly reduced during the past year since a 5.25%peak.
Economists think that a slowdown in the United Kingdom labor market could incite the MPC to relieve monetary policy.
The official data of the Office of National Statistics (ONS) showed that the unemployment rate of the United Kingdom increased to 4.7% in the three months to May, the highest level for four years.
And the average growth of profits, excluding bonuses, decreased to 5% in the May period to its lowest level for almost three years.
The governor of the Bank of England, Andrew Bailey, said earlier this month that the bank would be prepared to reduce rates if the job market showed signs of weakening.
In addition, ONS data showed that the United Kingdom's economy contracted both in April and May, pressing even more on those responsible for formulating policies to relieve loan costs.
Andrew Goodwin, chief economist of the United Kingdom for Oxford Economics, said it would be a “great surprise” if the MPC does not reduce interest rates on Thursday.
“Since the salary growth continues to cool and the banking rate even above the level that the majority of the members of the committee would consider neutral, it would be a big surprise if the MPC did not reduce the bank rate in another 0.25 percentage points on August 7,” he said.
However, he said that it is unlikely that the Committee accelerates its rhythm of interest rate cuts over the rest of 2025, since the signs of a slower pace of job losses “significantly reduce the urgency of the situation.”
In addition, some policy formulators may be more concerned with recent inflation data, and prices increase at faster rate in 15 months in June.
The increase in food inflation has exerted pressure on the general rate in recent months.
The meaning of Jack, a Barclays UK analyst, said he expected the rates to be reduced to 4%, but it is likely that there was a “division of three -way votes” between the MPC of nine people due to “different interpretations of the recent flow of data.”
He predicts that two members vote to maintain the level at 4.25%, and two others opt for a larger cut of 0.5 percentage points.
But he said that a “lack of smoking weapon” in relation to recent data could motivate the members of the committee “at the midpoint to remain gradual, careful and not compromised” in relation to rates cuts.
