Pretty much since her first day as chancellor of the Exchequer, when she was briefed by Treasury officials about the notorious Tory “black hole” in the public finances, Rachel Reeves has found good news to be something of a stranger. So she will be relieved that the Bank of England has reduced interest rates, in its fifth cut in a year, to 4 per cent.
It’s the lowest level since March 2023, and is a welcome break in the dark economic clouds. The governor of the Bank, Andrew Bailey, was happy to confirm that interest rates will continue to take a downward path, and the Bank’s forecast for UK economic growth, while extremely modest by most historical standards, has been nudged up a little.
