The Bank of England has reduced interest rates from 5% to 4.75%, but forecasts suggest fewer cuts in the near future due to rising inflation pressures following recent Budget measures. Bank governor Andrew Bailey emphasized a gradual approach to future reductions, citing global and domestic risks. This rate cut brings relief to over a million mortgage borrowers but poses challenges for savers as returns are expected to decline. Analysts predict that rates may not drop substantially until early 2026, as the economy adjusts to the Budget’s implications on inflation.