Connect with us

Published

on

The Bank of England is set to impose another interest rate hike on the UK economy today – the 12th consecutive increase in its battle to curb rampant inflation.

Both financial markets and economists widely expect a 0.25 percentage point rise to 4.5%.

The Bank Rate had stood at 0.1% in December 2021 before the tightening cycle began to tackle the pace of price rises, which were initially caused by economies getting back in gear after the COVID pandemic.

Russia’s invasion of Ukraine the following February then exacerbated the inflation problem, with soaring energy costs piling additional misery on Western nations.

Those considerable extra costs, faced by households and businesses alike, are still filtering through in the form of stubborn inflation for many goods and services despite wholesale energy costs easing in recent months.

The latest official figures showed the headline consumer prices index (CPI) measure at 10.1% – fed by the highest grocery inflation for 45 years.

The Bank is also likely concerned that higher-than-expected wage increases will embed inflation in the economy over the months ahead.

More on Cost Of Living

But there is good news on the CPI number just around the corner.

The inflation data for April is set to strip out the effects of the leap in household energy bills seen in April 2022 while the cost of fuel, which was also on the march at that time, is now well down on the levels seen in the same month a year ago.

Some economists predict a CPI number for April below 8% just because of the energy impact alone.

Read more:
‘Greedflation’ explored: Are businesses making inflation worse?

This does not mean that prices are necessarily coming down and the cost of living crisis is over.

It is just that the contributions to inflation from the energy components are not so severe when it comes to measuring the pace of price increases over a 12-month period.

Raising Bank Rate – the Bank of England’s base interest rate – is a tool to reduce demand in the economy.

The rises are intended to cool activity and help inflation ease back towards the Bank’s 2% target.

But there are consequences.

Please use Chrome browser for a more accessible video player

April: Another interest rate rise ‘almost a done deal’

Chief among them is the impact on borrowers, especially households on variable mortgage deals or those who have had to secure a new fixed deal over the past year.

According to research by TotallyMoney and Moneycomms, a further quarter-point interest rate rise will add £26 to monthly repayments for variable customers on the average UK property costing £270,708 with a 75% loan-to-value ratio.

The Bank rate increases, they said, meant the same customers were now facing forking out an extra £482 per month compared to pre-December 2021.

The Bank is mindful of the impact its actions are imposing on millions of households that are already struggling under the weight of meaty bills.

With that in mind, the remarks contained in the minutes of the Bank’s meeting and wider monetary policy report, all released at midday, will be crucial to understanding the likely way forward for borrowing costs.

The Bank is formally expected to raise its forecasts for economic growth as its staff no longer expect a recession this year.

But the outlook for Bank rate is a bit more clouded as inflation has proved more stubborn to bring down.

Bank governor Andrew Bailey’s comments to reporters will be especially closely watched for signs the rate-setting committee is edging towards a pause in its rate hikes.

The prospect of an end to the tightening will largely depend on the data ahead.

Andrew Hagger, personal finance expert at Moneycomms.co.uk, said: “Consumers and businesses will be praying that this is the last rate hike…. they will have their fingers crossed that inflation numbers will fall sharply before the next MPC (monetary policy committee) rate decision on 22 June.

“Savers may be enjoying the best returns on cash savings for more than a decade but those with borrowing have been pushed to the brink by the financial impact of a dozen consecutive rate hikes.”

Continue Reading

UK

Police recover body in search for suspect in Valentine’s Day pub shooting

Published

on

By

Police recover body in search for suspect in Valentine's Day pub shooting

Police searching for the suspect in the Kent pub shooting on Valentine’s Day have recovered a body from the River Thames.

Lisa Smith, 43, was killed after she was shot outside The Three Horseshoes in Knockholt on the evening of Friday 14 February.

Later that night, the suspect, named as Edvard Smith, was believed to have fallen into the Thames from the Queen Elizabeth II Bridge which crosses the river at Dartford 17 miles away.

Lisa Smith
Image:
Lisa Smith

Around that time, the suspect’s car containing a handgun was found abandoned on the bridge and a man was seen on the wrong side of the barrier.

About a week after the shooting, Kent Police said they believed Edvard Smith had died after falling into the water.

The force has now said a body was found in the Thames near Rainham in Essex on Friday afternoon. It has not been formally identified but the suspect’s family have been told of the development.

Edvard Smith was known to Ms Smith and there had been no prior contact between the police and the victim or suspect.

‘So much commotion’

Following the shooting, the landlady of The Three Horseshoes, Michelle Thomas, told Sky News she heard two loud bangs that she initially “thought were fireworks” on the night of the attack.

She said there was “so much commotion – screaming, shouting, crying” and the shooting had left the community in “absolute shock”.

Please use Chrome browser for a more accessible video player

CCTV captures sound of gunshots near fatal shooting site

She said Ms Smith, from Slough, had been to the pub before, “mostly in the summer” but “wasn’t a regular”.

Ms Thomas also said about 30 people were at the pub for dinner, while 20 more were in the bar as the incident unfolded just after 7pm.

Read more from Sky News:
Security breach at Parliament
Heavy rain and flooding batter Australian coast

Kent Police said on Saturday: “A body has been recovered by police from the River Thames, which is being linked to a murder investigation in Knockholt.

“On Friday 14 February 2025, Lisa Smith, 43, was killed after she was shot outside a pub in Main Road. The suspect was known to Lisa and later that evening officers found his car abandoned on the Queen Elizabeth II Bridge. Enquiries established he had fallen into the water below.

“At around 3.45pm on Friday 7 March, a body was located near Rainham, Essex. Formal identification has not yet taken place; however, the man’s family have been informed.”

Continue Reading

UK

UK weather: Warm weekend brings 20C temperatures – hotter than Spain and Italy

Published

on

By

UK weather: Warm weekend brings 20C temperatures - hotter than Spain and Italy

Parts of the UK are expected to be hotter than the Balearic Islands, Costa del Sol and the Amalfi Coast this weekend.

The country is set to reach the highest temperatures of the year so far, with central England heating up to 20C on Sunday.

Saturday is also set to reach temperatures in the high teens, with East Anglia, northwest England, the north Midlands and North Wales hitting 18-19C, the Met Office said.

Those temperatures are believed to be above average for this time of year.

Get the latest forecast for your area here

Craig Snell, a meteorologist at the Met Office, said there are a “few exceptions” to the “fine and sunny” weekend weather, including areas in the far north of Scotland, but those areas will still be generally dry and sunny.

A map showing warm weather over the UK on Saturday
Image:
A map showing warm fronts over the UK on Saturday

Meanwhile, popular holiday destinations in Europe are expected to record cooler temperatures.

A high of 15C is forecast this weekend for Marbella on the south coast of Spain, a maximum of 17C is expected in Ibiza, and 18C is forecast for Sorrento on Italy’s Amalfi Coast.

People enjoy the warm weather at Clevedon Marine Lake in Clevedon. Parts of the UK are expected to be warmer this weekend than holiday hotspots including the Balearic islands, Costa del Sol and the Amalfi Coast. Picture date: Saturday March 8, 2025. PA Photo. Photo credit should read: Ben Birchall/PA Wire
Image:
People were out in force on Saturday, enjoying the warmer weather. Pic: PA

Joggers run along the sea front in Southend-on-Sea, Essex.
Pic: PA
Image:
Joggers run along the sea front in Southend-on-Sea, Essex.
Pic: PA

Sky News meteorologist Chris England said the warm weekend is not expected to last, with conditions “cooling off from the North on Sunday night and through Monday”.

Colder fronts will start to move across the UK on Monday
Image:
Colder fronts will start to move across the UK on Monday

By Wednesday the UK will experience colder temperatures
Image:
By Wednesday the UK will experience wintry showers and cold temperatures

A spell of rain will move south across the country early next week, bringing the return of a few wintry showers in the North and North East.

“While there is uncertainty in the extent of rain and wintry showers through the middle of next week, there is higher confidence that below average temperatures will continue through the week, bringing a very different feel to the mild weather over the weekend,” deputy chief meteorologist Chris Bulmer said.

Read more from Sky News:
Man holding Palestinian flag climbs Big Ben
Reform UK MP Rupert Lowe reported to police

Temperatures will drop back below average across the UK from Tuesday, according to the Met Office.

Rural spots in Scotland could plummet as low as -4C, with maximum daytime temperatures typically between 5-8C.

Continue Reading

UK

Man holding Palestinian flag who climbed up Elizabeth Tower comes down

Published

on

By

Man holding Palestinian flag who climbed up Elizabeth Tower comes down

A man who climbed up the tower housing Big Ben in an apparent protest has now come down.

The barefoot man spent most of the day on a ledge several metres up the Elizabeth Tower holding a Palestinian flag at the Palace of Westminster in central London.

Westminster Police said the man was arrested once he reached the ground.

During Saturday, negotiators and emergency crews on a cherry picker had been talking to the man who was several feet away, appealing for him to come down.

He earlier told negotiators he would come down “on his own terms”.

The Metropolitan Police said they were called to the scene in central London at 7.24am on Saturday.

Pic: PA
Image:
Pic: PA

Photographs showed the man sat on the ledge with the flag and a keffiyeh, a headdress worn by men in the Middle East, wrapped around the decorative stonework on the tower.

More on London

He shared a number of videos on Instagram during his 16-and-a-half-hours on the tower, suggesting in one that he planned to stay there for three and a half days.

A large red stain which appeared to be blood could be seen on the side of the tower around the climber’s feet.

Please use Chrome browser for a more accessible video player

Man with Palestinian flag climbs Big Ben

All of Westminster Bridge was closed on Saturday morning as emergency services responded to the incident. Parliamentary tours were also cancelled.

Westminster Police added at around 1am on Sunday: “This has been a protracted incident due to the specifics of where the man was located and the need to ensure the safety of our officers, the individual and the wider public.

“We worked with other agencies including the London Fire Brigade and deployed specialist officers to bring this incident to a close as quickly as possible whilst minimising risk to life.

“We have been in close liaison with the Parliamentary Estate throughout and all roads have been reopened.”

People watch a man with a Palestine flag after he climbed up Elizabeth Tower, which houses Big Ben at the Palace of Westminster in London. Picture date: Saturday March 8, 2025.
Image:
Pic: PA

Conservative MP Ben Obese-Jecty said there needs to be an explanation about how the man got into the parliamentary estate.

He said: “Every day in Parliament I see dozens of armed police officers patrolling Portcullis House and the parliamentary estate. Where were they today?

“On Monday there needs to be a full explanation to MPs and staff as to how this protester was able to evade security so easily.”

A parliamentary spokesperson earlier said: “We are aware of an incident on the Parliamentary Estate this morning, which is being handled by the Metropolitan Police, assisted by the London Fire Brigade and the London Ambulance Service.

“Parliament takes security extremely seriously, however we do not comment on the specifics of our security measures or mitigations. As a result of this incident, tours of the Parliamentary Estate today have unfortunately had to be cancelled.”

Continue Reading

Trending