Interest rates frozen – but it’ll still be painful if you have a mortgage
It is arguably the most exciting non-event in recent economic history.
For 14 successive monetary policy meetings, the Bank of England raised its official interest rate – all the way from 0.1% up to 5.25%.
Today, for the first time since late 2021, it voted to leave borrowing costs unchanged.
Reaction to BoE’s decision – latest updates
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.
And this gets to a critical point underlying the Bank’s thinking. In much the same way as a fall in inflation doesn’t mean the cost of living crisis is over – prices are still rising fast, but not quite as fast as previously – freezing interest rates doesn’t mean the impact they have will diminish.
Indeed, at their current level, the Bank believes that interest rates should be considered “restrictive” – so even keeping them at 5.25% is delivering medicine to the economy, bearing down on spending and, the Bank hopes, inflation.
Even so, today’s decision is the most convincing signal yet that the Bank may now be close to, or even at, the peak for interest rates. The decision today was so finely balanced that many will wonder whether it will still go ahead and hike rates at its next meeting.
But in leaving borrowing costs where they are, the Bank is following a similar path to the European Central Bank – which just raised rates but hinted that might be that – and the Federal Reserve, which also left US rates on hold earlier this week. All around the world, central banks are coming to the conclusion that they may now be at the peak for interest rates.
But that raises a further question: what now? Investors are betting that the Bank may start cutting borrowing costs as soon as next year. But insiders at Threadneedle Street aren’t so sure. They suspect rates may have to stay higher for longer, both to bring inflation down and to ensure it stays down. Moreover, they warn that the days of zero interest rates may be gone for good.
Three brothers have been jailed after underage girls in Leeds and Barrow-in-Furness were sexually abused and raped over a number of years.
The trio were convicted in October last year, with the abuse taking place between 1996 and 2010.
Shaha Amran Miah, 49, known as Jai; Shaha Alman Miah, 47, known as Ali; and Shah Joman Miah, 38, known as Sarj all pleaded not guilty.
Sarj has since admitted his crimes. However, the judge said it could be a cynical attempt for leniency and did not give him any credit.
Shaha Amran Miah, Shaha Joman Miah and Shaha Alman Miah. Pic: Cumbria Police
They were sentenced on Friday to the following:
Shaha Amran Miah – life with a minimum term of 20 years and 338 days.
Shaha Alman Miah – 10 years in prison and four years on licence.
Shah Joman Miah – life with a minimum term of 21 years and 232 days.
Preston Crown Court heard Sarj and Jai regularly sexually abused two children at a Leeds mosque over many years, beginning when the victims were seven.
The three also preyed on vulnerable and underage girls at a flat above their family’s takeaway in Barrow, Cumbria, between 2008 and 2010.
They gave them cigarettes, alcohol, food and even hair extensions in what barrister Tim Evans KC called a “classic grooming technique”.
He said the brothers worked as a team and “created an environment in Barrow in which each of them could abuse young girls”.
Judge Unsworth KC said they had shattered the lives of their victims and hid in plain sight in the Cumbria town.
Multiple schoolgirls in their uniforms were regularly seen at the takeaway, the judge said, with Jai acting ruthlessly to stop them going to the police.
The court heard Sarj would take one of the girls to a hotel for sex about twice a month and became increasingly controlling – to the point she remains on medication and is terrified of seeing him in the street.
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A witness told Sky News the men abused their victims in a dingy room above the takeaway that “looked like a crackhouse” and had mattresses on the floor and sheets covering the windows.
“They knew exactly how young they were,” she said. “They didn’t only have one girlfriend each… they had multiple.”
Shaha Amran Miah was found guilty of 16 sexual offences against three girls, including rape, as well as two charges of intimidation and one of kidnap.
Shaha Alman Miah was found guilty of three counts of sexual activity with a child.
Shah Joman Miah was convicted of sexually abusing three children. There were nine counts of rape of a child among his 40 offences.
Apple will no longer offer customers in the UK its most advanced, end-to-end security encryption feature for cloud data – following a security row with the government.
The Advanced Data Protection (ADP) tool is an optional feature which means only account holders can see things like photos or documents that they have stored online. Apple itself does not have access to the data.
However, the UK government reportedly requested the right to see the data earlier this month.
In response, Apple has removed the tool from use in the UK.
The company is switching it off as an option for those not already using it, and will introduce a process to move existing users away from it.
Security officials argue that encryption hinders criminal investigations, while tech firms defend it as essential to user privacy.
The loss of end-to-end encryption for iCloud backup means Apple would be able in some instances to read user data such as iMessages that would otherwise be protected and pass it on to authorities if legally compelled.
However, if a user has end-to-end encryption, Apple cannot read the data under any circumstances.
An Apple store in New York. Pic: iStock
What has Apple said?
“We are gravely disappointed that the protections provided by ADP will not be available to our customers in the UK given the continuing rise of data breaches and other threats to customer privacy,” Apple said in a statement.
“Enhancing the security of cloud storage with end-to-end encryption is more urgent than ever before.
“Apple remains committed to offering our users the highest level of security for their personal data and are hopeful that we will be able to do so in the future in the United Kingdom.”
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Apple customers who already had the data protection tool turned on “will eventually need to disable this security feature”, said the company.
It is already unavailable for customers who weren’t using the feature, who now see a message reading: “Apple can no longer offer Advanced Data Protection (ADP) in the United Kingdom to new users.”
What has the UK government said?
The government said it will not confirm or deny whether it requested a Technical Capability Notice (TCN), which is what would give it the right to see the encrypted data.
“We do not comment on operational matters, including for example confirming or denying the existence of any such notices,” a Home Office spokesperson told Sky News.
According to a Home Office source, however, even if a TCN was issued, it wouldn’t give the government blanket access to people’s data.
Separate authorisations or warrants would still be required.
What’s the reaction from the tech industry?
Many in the tech industry are shocked by Apple’s move, with Graeme Stewart from cybersecurity company Check Point saying it “is effectively smashing open Pandora’s box and hoping the chaos stays neatly inside”.
“At its heart, encryption isn’t just for criminals; it’s a shield for millions of law-abiding citizens, businesses, and critical infrastructure,” he said.
“Now we are prying open that door to our digital Fort Knox, there’s no telling what else might slip through.”
Apple was also described as “calling the government’s bluff” by Robert Peake who is the technology partner at Keystone Law, for refusing to create a backdoor into its protected data.
“The Government will face increasing pressure to back down on this, as it seriously undermines its recent attempts to portray the UK as a pro-innovation place to operate,” he said.
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