Bank of England interest rate cut joy for mortgage holders as Reeves blames mini-Budget for inflation – live
Rachel Reeves admits taxes will rise in first BudgetSupport trulyindependent journalismFind out moreCloseOur mission is to deliver unbiased, fact-based reporting that holds power to account and exposes the truth.Whether $5 or $50, every contribution counts.Support us to deliver journalism without an agenda.Louise ThomasEditorThe Bank of England has cut interest rates for the first time since 2020 as inflation continues to remain steady, holding at their two percent target for two consecutive months.Bank Rate is currently 5.25per cent, a 16-year high where it has been pegged for the last year to fight inflation, but it has now been set at five percent, a drop of 0.25 percentage points. Governor Andrew Bailey said the move comes after inflation pressures “eased enough that we’ve been able to cut interest rates today”.The decision will come as joy for homeowners who have been struggling with rising mortgage payments as major banks have confirmed rates could go down as low as three per cent. Chancellor Rachel Reeves has welcomed the move but warned “millions of families are still facing higher mortgage rates after the mini-budget”.Show latest update 1722523845Cabinet Office ‘calls in’ Czech billionaire’s £3.57bn Royal Mail takeoverCzech billionaire Daniel Kretinsky’s £3.57 billion takeover deal for the owner of Royal Mail has been called in by the UK government under security rules.International Distribution Services, the parent company of Royal Mail, agreed a takeover deal by Mr Kretinsky’s EP Group in May.The PA news agency understands that the Cabinet Office has now launched a review process into the bid under the National Security and Investment (NSI) act.Mr Kretinsky’s EP Group and the Cabinet Office declined to comment.The process will assess whether the sale to Mr Kretinsky, who is already IDS’s largest shareholder, could affect the UK’s economic infrastructure or pose a security risk.The BBC reported that government officials will particularly look into links to Russia, with the billionaire investor owning stake in a major gas pipeline from Russia to Europe.Government officials could block a deal or ask for specific commitments from the suitor if the review raises major concerns.The review process is expected to take up to two months.Sources close to the process told PA that a review under the NSI act is “not a surprise”, with the government taking a similar process when Mr Kretinsky increased his shareholding in Royal Mail’s owner to 27.5 per cent in 2022.Czech billionaire Daniel Kretinsky More