Bank of England cuts interest rates as it warns food costs could push inflation to 4%

Thursday’s cut is the fifth in a year and takes borrowing costs to the lowest level since March 2023. Photograph: Bloomberg/Getty Images

The Bank of England has warned that rising food prices could drive inflation to 4% as it voted for a fifth cut in interest rates in a year, amid mounting concerns about the strength of the UK economy.

In one of its closest decisions since its independence more than 25 years ago, the Bank’s monetary policy committee (MPC) voted by 5-4 to cut its key base rate by a quarter- point to 4%.