The Latest Breaking News from Interest Rates

THE INDEPENDENT VIEW: Editorial: Despite interest rates being brought to their lowest level in more than two years, a combination of meagre economic growth, high government spending and U-turns over proposed welfare cuts has trapped Labour in a fiscal straitjacket. But the chancellor must remember that good policy is good…

The Bank of England has cut interest rates to 4% for the first time since 2023, signalling relief for borrowers but uncertainty ahead amid persistent inflation and slow growth.

The Bank of England Monetary Policy Committee held interest rates unchanged at several of its meetings since last year’s general election.

Here the PA news agency looks at what the decision means and what the Bank expects to happen to the economy.

Governor Andrew Bailey described it as a ‘finely balanced decision’ after MPC members were forced to hold a second vote.

COMMENT: The flagging UK economy will get a badly needed boost from the Bank of England’s third rate cut of the year – but, says James Moore, given an unexpected jump in inflation, there could now be several unintended consequences

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…

IN FULL

The cut came after the Bank’s rate-setting committee was forced to take a second vote for the first time in its history.

The reduction is the fifth over the past year and brings borrowing costs down to their lowest since March 2023

A below par FTSE 100 index today faded from its record close amid the impact of interest rate jitters, ex-dividend trading and a mixed bag of earnings.