Don’t be fooled by the interest rate cut – higher rates are here to stay

Bank of England governor Andrew Bailey said a return to ultra-low rates was unlikely. Photograph: Alberto Pezzali/PA

Mortgage payers and business owners will be hopeful that a cut in interest rates to 5% by the Bank of England this week signals a return to the pre-pandemic era of low borrowing costs.

Unless much lower interest bills arrive soon, thousands of homeowners and businesses could be forced to sell up.