It is generally anticipated that interest rates will be lowered on Thursday, with additional reductions anticipated later in the year.
Although no change or a larger drop is still possible, analysts say it is very likely that the Bank of England will lower its rate from 4.5% to 4.25%.
Businesses and people would be able to borrow money more cheaply as a result of this development, but savers would probably see lower returns.
After a two-minute pause to commemorate VE Day, the announcement will be made at 12:02 BST.
If a rate drop is confirmed, it would be the second this year and the fourth since the peak of 5.25% last year.
A balancing act
The rate of price increases in the UK, as indicated by inflation, will be closely monitored by members of the Bank's Monetary Policy Committee (MPC).
The Bank uses interest rates as its major instrument to make sure the annual rate of inflation stays at or near the 2% target.
Although a number of bill increases at the beginning of April, notably domestic energy costs, mean the rate is projected to rise, albeit only temporarily, the most recent data indicates an inflation rate of 2.6% in the 12 months leading up to March.
The committee will also keep an eye on broader economic instability around the world. Following the MPC's most recent meeting in March, President Trump's tariff stance in the US was revealed.
Many analysts predict that the MPC will respond with additional interest rate reduction this year as a result of the policy's unpredictability and ambiguity, which might slow GDP and inflation.
How would you be affected by a cut?
The markets and, consequently, mortgage prices have reflected the possibility of an immediate cut with more to follow.
Eight out of ten mortgaged homeowners have a fixed-rate mortgage, and they will carefully consider the interest rate on new offers when they first purchase or when they compare offers before a current one expires.
In recent weeks, lenders have been lowering mortgage rates on these new fixed arrangements, though not to the levels observed in most of the 2010s. Further drops in mortgage rates are not assured because lenders have already "priced in" a decrease in interest rates.
According to financial research firm Moneyfacts, the average rate for a two-year fixed mortgage is 5.15%, while the rate for a five-year agreement is 5.08%.
Samren Reddy, a University of Liverpool medical student who contacted Your Voice, Your BBC News, is saving money for his first house purchase.
"I don't believe that a slight drop will affect everything. The 21-year-old stated, "We're saving for the initial upfront deposit."
"If I'm trying to save for a home, alongside my day-to-day living, even if I may be paying less on a loan and could get a cheaper mortgage, it's swallowed up by the pressures of living."
The rewards that people like Samren earn on their savings are also probably going to be impacted by a decline in interest rates.
Savings providers typically lower their interest rates when base rates are lowered, especially for instant-access accounts.
Anna Bowes, a savings expert at financial advisory business The Private Office, said it was "encouraging" that fixed savings rates remained reasonable while paying reasonably high interest.
However, she stated that this requires consumers to be ready to lock their funds into an account and leave them there for the duration of the offer, which is typically one to five years.
A rate drop would ensure that some mortgage holders had cheaper monthly payments.
A base rate adjustment would have an immediate impact on nearly 600,000 homeowners who have a mortgage that "tracks" the Bank of England's rate.
According to projections by banking trade association UK Finance, if the Bank rate is dropped by 0.25 percentage points, the average tracker mortgage holder's monthly repayments will be reduced by around £29.
Vanda, a homeowner with a tracker, told the BBC: "I had a really good rate, then it changed, and I got caught off guard."
"A drop would be beneficial because I was recently laid off, so it would assist a little. However, I don't believe it will ever return to its previous state.
Those with standard variable rate mortgages will have to wait for the lender to make any modifications to the house loan rate if the Bank's base rate increases.
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