By bizn_fun 
Bank expected to give Christmas gift to borrowerspublished at 11:20 GMT
Dharshini David
Deputy economics editor
The Bank of England seems set to play Santa to borrowers with a rate cut today.
That’s after it narrowly decided to keep them on hold at its last meeting in November, with the Bank’s governor saying he needed more evidence that inflation is on a downward path.
He’s had that, and more, with official figures showing an unexpectedly large fall in inflation, rising unemployment and a decline in economic activity.
A rate cut would bring immediate relief to households who are on variable rate or tracker mortgages – and those looking to take out new loans.
But the Bank’s job is to get inflation down to the 2% target and keep it there. And inflation in services such as hospitality has been unexpectedly persistent this year, as businesses grapple with higher taxes and wage costs.
So opinion has been split over how fast overall inflation will fall to that 2% target – and so how much more relief for borrowers there could be in 2026.