Related topic: Inflation

Lower inflation and interest rate cuts will help unlock money so it can be spent in the economy, Martins said.

Inflation has fallen from 3.4% in December to 3% in January.

Economists are now predicting further Bank Rate reductions 'sooner rather than later'.

How will the Monetary Policy Committee (MPC) respond if US policy becomes significantly looser than UK policy?

Industry experts now say a February Bank Rate cut is now almost entirely off the table.

The move means Bank Rate is at its lowest level in almost three years.

With unemployment figures rising and inflation easing, industry experts say a rate cut tomorrow 'now looks like a cert'.

Inflation is beginning to reduce after remaining at 3.8% for the past three months.

UK inflation held steady at 3.8% in September, according to the latest figures from the Office for National Statistics (ONS), defying forecasts of a slight uptick to 4%. 

Holding policy too tight for too long comes with costs to output and employment, which could then pull inflation below target, Breeden says.