The central bank said future cuts would be gradual amid higher inflation forecasts after the new government introduced spending and tax increases in its budget.

The Bank of England cut its main interest rate by a quarter of a percentage point to 4.75% on Thursday after inflation across the U.K. fell significantly, relieving some pressure on borrowers who have faced elevated mortgage and loan costs.

The Bank of England on Thursday said it was cutting its key interest further after UK inflation hit a three-year low and signalled more reductions, easing pressure on borrowers.

High inflation in Britain has not been vanquished and there is a risk that some drivers of price growth could be heading upwards, Bank of England interest rate-setter Catherine Mann said on Wednesday.

The Bank of England has cut its main interest rate by a quarter of a percentage point after inflation across the U.K. fell below its target rate of 2%

The Bank of England cut interest rates but pointed to the uncertainty facing the global economy from fresh trade barriers and Middle East conflict

The Bank of England cuts interest rates to 4.75% in line with expectations, continuing its easing cycle started in August.

Interest rates have been cut for the second time this year, by a quarter of a percentage poi, but mortgage rates are still set to rise in a blow to homeowners. The Bank of England reduced the base rate from 5 per cent to 4.75 per cent on Thursday, following a 0.25 percentage-point cut in August, which was the first drop in four years.

High inflation in Britain has not been vanquished and it is more likely to overshoot than undershoot Bank of England forecasts over the medium term, BoE interest rate-setter Catherine Mann said on Wednesday.

Markets await US inflation for clues on further Fed rate cuts. Opus Energy has agreed to pay more than £7m in refunds, redress and goodwill payments after the regulator Ofgem found that the company overcharged almost 88,