Interest rates cut to 4% as UK inflation picks up

The Bank of England has cut interest rates to 4% (Jordan Pettitt/PA) - (PA Wire)

UK interest rates have been cut to their lowest level since March 2023, despite the Bank of England predicting a sharp rise in inflation amid accelerating food prices.

The central bank chose to reduce interest rates to 4% from 4.25%, pointing towards a recent fall in wage inflation and reduced uncertainty over the impact of US tariffs.