Connect with us

Published

on

The Bank of England has left its interest rate unchanged at 5.25%, a day after inflation unexpectedly fell by more than expected.

The Bank’s monetary policy committee (MPC) voted 5-4 – the narrowest possible margin – to leave the cost of borrowing unchanged.

Up until the inflation data was released on Wednesday morning, markets had put an 80% probability on them raising the rate by a further quarter percentage point.

Reaction to Bank of England decision – latest updates

By this morning, that probability had sunk to just below 50%.

The decision brings to an end the longest successive period of “tightening” (a lift in the cost of borrowing) in recent Bank of England history – as the MPC raised rates in 14 successive meetings.

The last time the MPC voted to leave interest rates unchanged was in November 2021.

However, the fact that four members – Jon Cunliffe, Megan Greene, Jonathan Haskel and Catherine Mann – voted to raise the cost of borrowing might be seen as a signal that in the coming months the Bank may lift rates again.

The Bank also voted to continue its programme of reversing quantitative easing – the scheme whereby it creates money to buy government bonds and pump cash into the economy.

Analysis: This freeze will still be painful


Ed Conway - Economics editor

Ed Conway

Economics & data editor

@EdConwaySky

It is arguably the most exciting non-event in recent economic history.

Today, for the first time since late 2021, the Bank of England voted to leave borrowing costs unchanged.

Now in some senses, this is indeed a non-event. Interest rates are no higher than they were yesterday, but the cost of borrowing remains painfully high for many households.

Those due to refinance their mortgages in the coming months will still see a sharp increase in their rates compared with two or five years ago. The cost of living crisis is still with us.

Read Ed’s full analysis here.

It said over the next year it will sell off a further £100bn of bonds, cutting its total asset pile down to £658bn.

The Bank of England governor, Andrew Bailey, said: “Inflation has fallen a lot in recent months, and we think it will continue to do so.

“That’s welcome news. But there is no room for complacency. We need to be sure inflation returns to normal and we will continue to take the decisions necessary to do just that.”

Governor of the Bank of England Andrew Bailey attends a press conference for the Monetary Policy Report
Image:
Andrew Bailey voted to maintain Bank rate at the 5.25% level

Ahead of the meeting, economists had been torn on whether the promise of falling inflation would outweigh the Bank’s concerns about rising wage inflation.

It has previously cited both of these statistics as key things to watch.

In the event, the five members who voted to leave rates unchanged judged “the latest developments meant that the judgement to keep Bank rate unchanged at this meeting rather than increase it was finely balanced” – according to the minutes of the MPC.

“Conditions were likely to warrant a restrictive policy stance being maintained until material progress had been made in returning inflation to the 2 per cent target.”

That signals that there is still a significant chance that Bank rate rises again, and that even if it doesn’t, it is unlikely to come down very quickly.

Continue Reading

UK

Mosquito bite warning after rise in chikungunya cases in travellers returning to UK

Published

on

By

Mosquito bite warning after rise in chikungunya cases in travellers returning to UK

Travellers are being warned about mosquito bites on holiday after a rise in chikungunya infections in people returning to the UK.

The UK Health Security Agency (UKHSA) also said the first cases of the emerging oropouche virus had been recorded.

Chikungunya typically causes sudden fever and joint pain, which can be debilitating, and lasts from a few days to weeks.

The name comes from a word in a Tanzanian language meaning “that which bends up”, owing to the joint pain associated with it.

Most people recover but in some cases the symptoms can last several months or even years.

It’s spread by mosquito bites in tropical and subtropical regions, and most of the 73 cases reported in the UK so far this year were in London and linked to travel to Sri Lanka, India, and Mauritius.

Only 27 cases were reported in the same January to June period last year.

More from UK

Chikungunya can’t spread directly from person to person – so if someone becomes ill in the UK, they can’t pass the infection on, and the mosquitos responsible aren’t present here.

Dr Philip Veal, consultant in public health at the UKHSA, said it can be a “nasty disease” and the increase in cases was “worrying”.

“It is essential to take precautions against mosquito bites when travelling,” he said.

More on this story:
Thousands fall ill with chikungunya in China

“Simple steps, such as using insect repellent, covering up your skin and sleeping under insecticide-treated bed nets can greatly reduce the risk.”

Chikungunya is mainly found in Asia and Africa, but cases have been reported in Europe and North America this year.

Two vaccines to guard against the infection are available in the UK from private travel clinics.

The first cases of the Oropouche virus have also been confirmed in Britain, according to the UKHSA.

It’s spread by midge and mosquito bites and the three cases are all linked to travel to Brazil.

Oropouche was first identified in Trinidad and Tobago in the 1950s and had been mainly confined to the Amazon area.

However, cases have been increasing since 2023 and have shown up in places such as the Dominican Republic, Cuba, and Peru.

Read more from Sky News:
Swarm of jellyfish shuts down nuclear plant
Vaccine gives hope for pancreatic cancer patients

Symptoms include fever, headache, muscle and joint pain, nausea and vomiting.

Anyone who gets such symptoms after being in Central and South America or the Caribbean is advised to get urgent medical advice.

Most people recover on their own, but it can cause severe disease in the very elderly or those with a weak immune system.

Continue Reading

UK

Man staying at hotel that has been focus of protests denies sexual assault charge

Published

on

By

Man staying at hotel that has been focus of protests denies sexual assault charge

A man staying at a hotel that has been the focus of a series of protests has denied a charge of sexual assault and faces a trial next month.

Mohammed Sharwarq, a 32-year-old Syrian national, was arrested after police were called to the Bell Hotel on the Epping High Road in Essex yesterday, police said.

Sharwarq, who is alleged to have kissed a man on the neck, indicated a plea of not guilty to a charge of sexual assault at Chelmsford Magistrates’ Court today.

He indicated guilty pleas to six further charges concerning four complainants – with two counts of common assault and four of assault by beating.

Sharwarq is alleged to have punched a man in the face, thrown an object at a man, slapped a third man in the face and attempted to punch a fourth.

Sky News understands the alleged offences took place inside the hotel between 25 July and 12 August.

Read more from Sky News:
Three teens in court over man’s murder
What to expect from Trump-Putin summit

District judge Lynette Woodrow remanded Sharwarq, who was assisted in court by an Arabic interpreter, in custody until his trial on 30 September.

The arrest followed weeks of protests outside the hotel.

Neil Hudson, the Conservative MP for Epping Forest, said last month that the protests were a crisis that “risks boiling over”.

Continue Reading

UK

UEFA Super Cup: Spurs let slip 2-0 lead to lose to PSG on penalties

Published

on

By

UEFA Super Cup: Spurs let slip 2-0 lead to lose to PSG on penalties

Tottenham let slip a two-goal lead before losing a penalty shootout to Paris St Germain (PSG) in the final of the UEFA Super Cup.

Spurs defenders Micky van de Ven and Cristian Romero scored from set pieces to put the north London side on their way to winning the trophy, in what was manager Thomas Frank’s first game in charge.

However, Champions League winners PSG, who were thrashed in the Club World Cup final by Chelsea last month, produced a stunning response after Kang-in Lee pulled one back with five minutes left.

Tottenham's Cristian Romero scores his side's second goal. Pic: AP
Image:
Tottenham’s Cristian Romero scores his side’s second goal. Pic: AP

PSG striker Goncalo Ramos, who was brought on in the 77th minute, forced the game to penalties after scoring a header in the fourth minute of stoppage time.

The Super Cup final, played each year between the winners of the Champions League and Europa League, does not feature extra time – meaning the game went straight to spot kicks.

Tottenham players react during the penalty shootout. Pic: AP
Image:
Tottenham players react during the penalty shootout. Pic: AP

Europa League winners Tottenham initially had the advantage when Vitinha missed PSG’s first kick – but it was followed by Van de Ven and Mathys Tel failing to score their penalties.

PSG, managed by Luis Enrqiue, went on to win 4-3.

PSG's players celebrate after winning the final. Pic: AP
Image:
PSG’s players celebrate after winning the final. Pic: AP

The PSG players poured on to the pitch in celebration, knowing they had etched their names into history as the first French side to lift the trophy.

“It’s incredible to win like this. This team once again showed character, even if we’re not at our physical best,” PSG defender Marquinhos said.

Read more from Sky News:
Three teens in court over man’s murder
What to expect from Trump-Putin summit

PSG's Marquinhos lifts the trophy. Pic: AP
Image:
PSG’s Marquinhos lifts the trophy. Pic: AP

“We managed to get the goals we needed through the substitutions, and in the shootout we have players who take their penalties well and a goalkeeper who helped us.”

Tottenham, who finished 17th in the Premier League last season, were unable to win what would have been their second trophy in 17 years – with the first one coming when they beat Manchester United in Europe’s second-tier competition in May.

Continue Reading

Trending