cut-rate

Meanwhile, the risk of rising inflation could push mortgage rates up if banks anticipate this means the Fed will not cut rates any further any time soon.

However, the Bank cut rates because of concerns that the jobs market is weakening, with data showing job vacancies are continuing to fall and wage growth is slowing.

Central banks typically cut rates in an effort to boost growth.

Central banks typically cut rates to boost growth if there are signs of slowing economy and falling employment, as it makes it cheaper for consumers and businesses to borrow.

The next Fed meeting will take place in mid-September, when many economists expect it to cut rates.