DeVere now predicts a Bank of England rate cut in December, followed by three more next year, as Britain’s economic trajectory shifts more towards slower growth and easing price pressures.

The financial consultancy firm said the turning point was the Autumn Budget delivered by Chancellor Rachel Reeves yesterday, which removed the final major uncertainty preventing the Bank of England from restarting its easing cycle.

DeVere Group chief executive Nigel Green said: “While the Chancellor stepped back from the more aggressive tax rises that had been discussed earlier, the overall package is the highest tax burden on record, lower near-term inflation, and weaker already-fragile growth momentum.

“We now expect the Bank of England to cut rates in December and then follow with three more reductions in 2025.

“The data now supports it, the fiscal picture allows it, and the growth outlook increasingly demands it.”

Measures announced in the Budget, including rail fare freezes, fuel duty relief and steps to lower household energy bills, are projected to shave as much as half a percentage point off inflation in the second quarter of next year.

This comes as price growth had already begun to cool, with October data showing inflation easing for the first time in seven months.

Green added: “The significance of the Budget lies less in dramatic tax changes and more in what it removes – policy uncertainty.

“With fiscal risks clearer, the Bank can refocus on the direction of inflation and growth, both of which point toward lower rates.”

Market expectations for a December cut surged immediately after the Budget.

Even so, deVere believes markets still underestimate the pace of rate reductions that will be needed as slower growth feeds through the economy.

“We think three cuts next year is now realistic, not aggressive,” says Green. “Rates have already done their job on inflation. Keeping them too high for too long risks unnecessary damage to growth, employment and investment.”