Britain is set for solid growth and falling inflation this year but the Bank of England has little scope to cut interest rates further, the NIESR think tank predicted on Wednesday in a relatively upbeat set of forecasts.

The base rate is currently at 4.75% after it was held at the previous Bank of England meeting in December 2024 - but is another cut in store for this Thursday?

The Bank of England is widely expected to cut interest rates for the third time in six months later Thursday even though inflation remains above its target.

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Bank of England policymaker Catherine Mann said on Tuesday that her unexpected vote for a half percentage-point cut in interest rates last week did not mean she wanted a series of rate cuts or that she would vote the same way again in March.

The Bank of England (BoE) is set to cut interest rates in its next meeting this Thursday from 4.75% to 4.5%, following lower-than-expected inflation figures for December but ongoing concerns about sluggish economic growth.