UK interest rate decision set to be close call after inflation fall

Investors remain divided over whether interest rates will be raised again on Thursday after a shock slowdown in price rises. 

A 15th rise in a row to 5.5% from 5.25% was widely predicted, but now only half of investors are predicting a rise. 

Expectations changed after inflation was revealed to have fallen unexpectedly to 6.7% in the year to August. 

The Bank of England will reveal its decision at midday. 

Any rise would mean higher interest rates on some mortgages and loans, but also higher savings rates.

The Bank has been hiking rates since December 2021 in an effort to tackle inflation in the UK, which is much higher than usual and putting households under financial pressure.