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The Bank of England has revealed a 0.5 percentage point interest rate increase – its ninth consecutive rise as it maintains its battle against inflation.

The decision, by its monetary policy committee (MPC), took the bank rate to 3.5% – a fresh high not seen since the 2008 financial crisis.

The move, however, represented a slowdown on the 0.75 percentage point rise that was imposed last month after inflation had leapt to a 41-year high of 11.1% on the back of rising energy and food bills.

Thursday’s interest rate hike level was widely expected by economists and financial markets given the more recent easing in the consumer prices index (CPI) measure of inflation, to 10.7%, reported on Wednesday.

It matched the rate move announced by the US Federal Reserve on Wednesday evening while it was also followed by the European Central Bank, taking the eurozone central bank’s main deposit rate to 2% from 1.5%.

The voting on the nine-member MPC made for interesting reading as it was split three ways – with financial analysts saying that mixed messages were behind a fall in the value of the pound, by a cent against the dollar, to $1.23 (£1) after the vote.

Two backed no change while one, the economist Catherine Mann, sought a repeat of November’s hike. The rest including governor Andrew Bailey all supported the 0.5 percentage point rise.

While the latest inflation rate raised hopes that the core cost of living measure had peaked, the bank is still raising its interest rate because inflationary pressures remain in the economy despite its assertion the UK is already in recession.

Policymakers would have been concerned, for example, by separate data this week showing basic wages growing at their fastest pace since 2001, if the pandemic period is excluded.

“The labour market remains tight and there has been evidence of inflationary pressures in domestic prices and wages that could indicate greater persistence and thus justifies a further forceful monetary policy response,” the Bank said.

Rising Bank rates however, while good for savers on paper, will only add to borrowing costs in an economy already squeezed by rising prices.

Immediate pain for some homeowners

Those on tracker or standard variable rate (SVR) mortgage deals will feel the most immediate pain.

Financial information firm Moneyfacts said a Bank rate rise of 0.5 percentage points on the current average SVR of 6.40% would add approximately £1,509 onto total repayments over two years.

The rate rise is also likely to be reflected in fixed rate deals ahead – still recovering from the temporary mini-budget market mayhem of September.

The Bank warned in its Financial Stability Report earlier this week that the average mortgage repayment was to increase by £250 a month, placing more households at risk of default next year.

Financial markets see Bank rate hitting 4.6% over the next six months.

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Hunt: Economy ‘likely to get worse’

Rachel Springall, finance expert at Moneyfacts.co.uk, said: “This latest base rate rise will be disappointing news to borrowers who are already facing a cost of living crisis and recent turmoil surrounding mortgage interest rates.

“Consumers may breathe a sigh of relief to see fixed mortgage rates have started to drop in recent weeks and hope these rates will fall further.

“However, the cost to secure a new fixed deal is much higher than they may realise, as both the average two- and five-year fixed rates have increased by over 3% during the past year.

“The erratic behaviour in mortgage pricing makes it essential for borrowers to seek advice to scrutinise all the options available to them,” she wrote.

Chancellor Jeremy Hunt said of the Bank’s action: “High inflation, exacerbated by Putin’s war in Ukraine, continues to plague countries across the world, eating into people’s pay cheques and driving up food and energy prices.

“I know this is tough for people right now, but it is vital that we stick to our plan, working in lockstep with the Bank of England as they take action to return inflation to target.

“The sooner we grip inflation the better. Any action which risks permanently embedding high prices into our economy will only prolong the pain for everyone, stunting any prospect of economic recovery.”

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Man charged with 11 counts of attempted murder over mass train stabbing and another attack at station hours earlier

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Man charged with 11 counts of attempted murder over mass train stabbing and another attack at station hours earlier

A 32-year-old man has been charged with 10 counts of attempted murder after a mass stabbing on a high-speed train.

Anthony Williams, 32, from Peterborough, was arrested on Saturday evening following an attack on the Doncaster to London King’s Cross LNER service.

He has been charged with 10 counts of attempted murder, one count of actual bodily harm and one count of possession of a bladed article following a knife attack on a train in Cambridgeshire on Saturday, British Transport Police (BTP) said.

BTP said he has also been charged with another count of attempted murder and possession of a bladed article in connection with an incident on a London train in the early hours of 1 November.

Police said a victim suffered facial injuries after being attacked at 12.46am with a knife on a train at Pontoon Dock station on the Docklands Light Railway (DLR) in east London.

In a statement to Sky News, BTP said the suspect had left the location before police arrived and officers subsequently identified Williams as a suspect.

Williams will appear at Peterborough Magistrates on Monday morning, police said.

Armed police were deployed to Huntingdon, Cambridgeshire, where the train was stopped and made the arrest within eight minutes of the first 999 call.

Forensic teams gathering evidence at Huntingdon train station on Sunday, after a mass train stabbing. Pic: PA
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Forensic teams gathering evidence at Huntingdon train station on Sunday, after a mass train stabbing. Pic: PA

Footage of the arrest has emerged, showing a man on the ground surrounded by officers and a barking police dog, with the sound of a Taser being deployed.

Another man, 35, from London, who was also detained, was later released after officers established he was not involved.

On Monday, Transport Secretary Heidi Alexander told Sky News that one man, originally suffering life-threatening injuries, was now in a critical but stable condition in hospital.

She told Mornings with Ridge and Frost programme: “He went in to do his job, and he left work a hero. And there are people who are alive today because of his actions and his bravery.”

On Sunday, British Transport Police (BTP) confirmed he was a member of LNER rail staff who tried to stop the attacker.

“Having viewed the CCTV from the train, the actions of the member of rail staff were nothing short of heroic and undoubtedly saved people’s lives,” said BTP Deputy Chief Constable (DCC) Stuart Cundy.

The train driver, named as Andrew Johnson, has also been hailed as “courageous” for his actions during the stabbings.

Read more from Sky News:
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Following the announcement about the charges on Monday, DCC Cundy warned against anyone interfering with their ongoing investigation.

“Our investigation is also looking at other possible linked offences. Following the charges authorised by the Crown Prosecution Service (CPS) I would stress the importance of not saying or publishing anything which might jeopardise or prejudice ongoing criminal proceedings, or the integrity of the investigation.”

Ms Alexander also told Sky News that BTP would be “increasing the visible patrols at stations” over the next few days.

“But generally, our trains are some of the most safest forms of public transport anywhere in the world,” she added.

Armed police officers on patrol at St Pancras International station on Monday morning. Pic: PA
Image:
Armed police officers on patrol at St Pancras International station on Monday morning. Pic: PA

Tracy Easton, chief crown prosecutor for CPS Direct, said: “Our team of out-of-hours prosecutors worked to establish that there is sufficient evidence to bring the case to trial and it is in the public interest to pursue criminal proceedings.

“We worked closely with British Transport Police to review a huge volume of evidence including CCTV. The number of charges will be kept under review as this continues to progress.

“We know the devastating impact the events on Saturday’s train has had and how the incident shocked the entire country. Our thoughts remain with all those affected.”

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Pregnant British teenager held on drugs charges freed from Georgian jail

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Pregnant British teenager held on drugs charges freed from Georgian jail

A pregnant British teenager has been released from jail in Georgia after being held on drug smuggling charges.

Bella May Culley, 19, of Billingham, County Durham, was arrested in May at Tbilisi Airport and accused of attempting to smuggle 12kg of marijuana and 2kg of hashish into the country.

She was found guilty by a Georgian court on Monday and sentenced to five months and 25 days in prison, the total time she had already spent in custody. Her family also paid a 500,000 lari (about £138,000) as part of a plea deal aimed at reducing her sentence.

Culley and her mother, Lyanne Kennedy, both cried as the verdict was read.

Wearing a cream blazer, the teenager looked overwhelmed as she was released from custody on Monday.

Asked how she felt, she said she was “happy” and told reporters she did not expect to be freed.

Bella Culley at an earlier court hearing in May. Pic: RUSTAVI 2/AP
Image:
Bella Culley at an earlier court hearing in May. Pic: RUSTAVI 2/AP

Culley’s mother held her daughter’s hand as she was released.

Georgian prosecutors were considering a two-year sentence, but “decided to consider the time she has already served,” case prosecutor Vakhtang Tsalughelashvili told The Associated Press.

Culley’s lawyer, Malkhaz Salakhaia, said she would be given her passport and would be free to leave the country on Monday.

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Police footage released in May showed Culley in handcuffs as she made an initial court appearance. Pic: AP

The teenager pleaded not guilty to the charges after her arrest, saying she was tortured in Thailand and forced to carry the drugs.

Culley initially pleaded not guilty at a hearing in July to possession and trafficking illegal drugs.

She initially faced a maximum penalty of up to 15 years or life imprisonment, but was in talks with prosecutors about a potential plea bargain.

Bella Culley walks with her mother, Lyanne Kennedy, following her release. Pic: Reuters
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Bella Culley walks with her mother, Lyanne Kennedy, following her release. Pic: Reuters

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In Georgia, a nation of 3.7 million in the South Caucasus, the law allows for financial plea agreements that can be reached to reduce or eliminate a prison sentence in certain cases.

Such plea agreements are often obtained in drug-related cases.

Culley was reported missing in Thailand before her arrest at Tbilisi Airport on May 10.

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Sole survivor of Air India crash tells Sky News the trauma ‘broke’ him

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Sole survivor of Air India crash tells Sky News the trauma 'broke' him

The sole survivor of the Air India crash that killed 241 people on board has told Sky News he has been “broke down” by the trauma.

Air India Flight 171 crashed into a building just after take-off in Ahmedabad, Gujarat, on 12 June, with Briton Viswashkumar Ramesh the only passenger who walked away from the wreckage.

In an interview with Sophy Ridge on the new Mornings with Ridge and Frost programme, Mr Ramesh faltered, stumbled and regularly lapsed into long silence as he tried to recall the day.

Warning: This article contains details some may find distressing

Mr Ramesh, 40, was in the now-fabled seat 11a, which was located next to an emergency door that he managed to climb out of after the Boeing 787 Dreamliner crashed.

Smoke rises from the wreckage. Pic: Reuters
Image:
Smoke rises from the wreckage. Pic: Reuters

His younger brother, Ajaykumar, seated in a different row on the plane, could not escape.

Months on, Mr Ramesh wanted to share the impact of that day in an attempt to try to regain control of his life – and to pressure Air India into addressing the catastrophic effect of the crash on him and his family.

But it is clearly traumatic to talk about.

“It’s very painful talking about the plane,” he says softly.

Asked by Ridge if he can speak about what happened on board, he falls silent.

Just after the crash, from his hospital bed, Mr Ramesh told cable news channel DD India “there were bodies all around me” when he stood up after the crash. A further 19 people had been killed on the ground.

In hospital, he was still pleading for help in finding his brother.

“How is your life now?” Ridge asks.

He says the crash has left him feeling “very broke down”, adding it’s much the same for the rest of his family.

He does not leave the house, he says, instead sitting alone in his bedroom, doing “nothing”.

“I just think about my brother,” he adds. “For me, he was everything.”

He says he still cannot believe Ajaykumar is dead – but that’s as much as he can bring himself to say about him.

Ridge acknowledges the contrast between Mr Ramesh’s own survival – “a miracle” – and the “nightmare” of losing his brother.

It echoes the sentiment of Mr Ramesh’s other brother, Nayankumar, who told Sky News in June: “I’ve got no words to describe it. It’s a miracle that he [Viswashkumar] survived – but what about the other miracle for my other brother?”

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Nayankumar speaking to Sky News in June

Mr Ramesh says he is still suffering physical discomfort too, dealing with knee, shoulder and back pain, along with burns to his left arm. His wife, he says, has to help him shower.

He and his wife live in Leicester with their four-year-old son, Divang.

“I have a four-year-old, so I know what four-year-olds are like,” Ridge says. “They’re a handful but they can bring a lot joy as well. How has he been since the tragedy happened?”

Mr Ramesh says Divang is “okay” but, with his eyes lowered, adds: “I’m not talking properly with my son.”

“Does he come to your room?” Ridge asks.

He shakes his head.

Mr Ramesh was joined by Leicester community leader Sanjiv Patel and his adviser and spokesperson Radd Seiger for support as he spoke to Ridge.

“Sophy… this is an important question that you’re asking,” says Mr Seiger.

“You’re a parent, I’m a parent, and we all know that being a parent is a privilege, isn’t it? But it takes a lot of energy… you need to be in a good place to be a good parent, to have that from the moment they wake up to the moment they go to bed.

“You need to be in a good place and we can all see… he’s [Mr Ramesh] been robbed of that and I think it’s just a chore for him to just get through the day, let alone be a husband, be a father.”

What’s next for the crash’s sole survivor?

Mr Seiger and Mr Patel say the list of what he needs to get his life back on track is “endless” but that it starts with “practical things” such as financial support.

Mr Ramesh and Ajaykumar used “all their savings” to set up a fishing business in India, which saw them frequently flying there together from the UK.

The business has stopped running since the crash, meaning Mr Ramesh’s extended family in both the UK and India has no income, according to Mr Patel.

For them, it amounts to an “existential threat”, he adds.

Police officer standing in front of Air India aircraft wreckage after crash near Ahmedabad airport. Pic: Reuters
Image:
Police officer standing in front of Air India aircraft wreckage after crash near Ahmedabad airport. Pic: Reuters

They say Air India has offered Mr Ramesh a flat interim payment of £21,500 – a one-off sum given to a claimant in advance of reaching the end of a personal injury claim.

A spokesperson for Tata Group, Air India’s parent company, told Sky News that Mr Ramesh had accepted the payment and that it had been transferred to him.

But Mr Seiger says the sum “doesn’t even touch the sides” when it comes to everything Mr Ramesh needs while he is unable to work or leave his home – from help with transporting his son to school, to food, to medical and psychiatric support.

They are petitioning for more than just cash payments, which they suggest reduces Mr Ramesh to “a number on a spreadsheet”.

Rather, they want Air India’s chief executive Campbell Wilson to meet with him, his family and the families of other victims in the crash, to hear about their struggles and “talk as humans”.

Mr Patel said: “Meet the people. Understand what they’re going through. Relying on bureaucratic machinery to deal with real lives [of people] who are going through real trauma – the pain of that, the financial consequences – that is the day-to-day – how lives have been destroyed, and not just the immediate family, but extended families too.”

A fire officer stands next to the crashed aircraft. Pic: Reuters
Image:
A fire officer stands next to the crashed aircraft. Pic: Reuters

A spokesperson for Air India told Sky News: “We are deeply conscious of our responsibility to provide Mr Ramesh with support through what must have been an unimaginable period. Care for him – and indeed all families affected by the tragedy – remains our absolute priority.

“Senior leaders from across Tata Group continue to visit families to express their deepest condolences. An offer has been made to Mr Ramesh’s representatives to arrange such a meeting, we will continue to reach out and we very much hope to receive a positive response.

“We are keenly aware this continues to be an incredibly difficult time for all affected and continue to offer the support, compassion, and care we can in the circumstances.”

Mr Patel also claims the UK government took away Mr Ramesh’s family’s Universal Credit after they went to India following the disaster.

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According to the government’s website, those receiving Universal Credit can continue to do so if they go abroad for one month. This can be extended to two months if “a close relative dies while you’re abroad and it would not be reasonable for you to come back to the UK”, it states.

They are calling on Prime Minister Keir Starmer to look into the family’s circumstances and pressure Air India into doing more to help.

Mr Patel appeals to him, saying: “Take action today. If this was your family, what would you do? And if you understand that, you’ll know what to do.”

He suggests the UK government can also be doing more directly to help families in Britain who have been “devastated” by the crash.

“So while we wait for Air India to do what’s right, there’s what the UK authorities and the system can do as being right to serve the citizens in support during this tragic time,” he adds.

The Department for Work and Pensions told Sky News: “Our thoughts remain with the loved ones affected by this devastating tragedy.

“Our policy ensures people travelling abroad due to a bereavement can continue receiving Universal Credit for up to two months, rather than the standard one-month limit. Those who are abroad for longer periods would not be able to continue receiving the benefit.

“People can make a new claim once they return to the UK. This approach strikes a balance between our commitment to ensuring people get the support they need and our duty to the taxpayer.”

:: Watch Mornings with Ridge and Frost on weekdays Monday to Thursday, from 7am to 10am on Sky News

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