The Bank of England has lowered interest rates to 4.5%, the lowest in 20 months, aiming to ease borrowing costs.
This is the third cut in the current cycle, following reductions last year. The decision was backed by a 7-2 vote, with two members pushing for a bigger cut to 4.25%.
The change will bring some relief to mortgage holders, especially those on tracker deals, though fixed-rate mortgages remain largely unchanged. Savers may see lower returns as banks adjust their rates.
Despite the cut, BOE has warned of economic uncertainty, downgrading its growth forecast for the year. More cuts are expected, but they will be introduced cautiously.