Bank of England issues mortgage rate warning to 4.4 million homes and sounds Trump trade alarm
Around half the UK’s mortgage holders face paying higher rates over the next three years, the Bank of England has warned, while sounding alarm over the potential impact of Donald Trump’s looming return to the White House.
Its latest financial stability report – released twice a year – showed 4.4 million homes were set to refinance at higher rates.
But it added that around a quarter of borrowers were expected to benefit from lower rates, based on current market pricing, as rates have dropped from the highs seen in 2023.
The central bank’s financial policy committee also identified a risk ahead – that higher trade barriers could hit global growth.
While it did not directly reference Donald Trump’s warning about raising US trade tariffs when he becomes president again in January, the report said such barriers would feed uncertainty about inflation, potentially causing volatility in financial markets.
“A reduction in the degree of international policy cooperation could hinder progress by authorities in improving
the resilience of the financial system and its ability to absorb future shocks,” the report said.
Please use Chrome browser for a more accessible video player
Trump’s threat of tariffs explained
Money latest: The ‘no go’ list of holiday destinations
Asked at a news conference whether the Bank was specifically referring to Mr Trump’s trade tariff warnings, governor Andrew Bailey cautioned that it was “the doing that counts”.
The report spoke of raised global risks more generally and said that any sharp financial market correction could raise credit costs.
When it came to the UK specifically, Mr Bailey also told reporters he saw no trade-off between financial stability and economic growth.
That was after chancellor Rachel Reeves said regulators had gone too far in discouraging risk-taking.
The Bank said its latest stress tests of the banking system had raised no concerns.
It also said that financial stress among households and businesses remained resilient in the face of the price shocks the economy had experienced since the end of the COVID pandemic.
But it signalled that the battle against inflation would continue to drag on.
The report was released against a backdrop of weak expectations for a third interest rate cut this year when the Bank’s rate-setting committee meets in a few weeks’ time.
Just 13% of financial market participants expect a reduction to 4.5% on 19 December.
That is because all the data the Bank relies on to judge whether a cut to borrowing costs is appropriate contains red flags.
The headline measure of inflation is back above the monetary policy committee’s 2% target at 2.3%, following a sharp leap from 1.7% in October due to rising energy costs.
Some other stubborn elements include prices for services.
Please use Chrome browser for a more accessible video player
Inflation rises beyond forecast
Another stumbling block has come from the pace of wage growth which the Bank fears will stoke demand in the economy, and price growth as a result.
There have been no dissenters on the future path for rates, if recent remarks by Bank rate-setters are anything to go by.
All have spoken of the need for a “gradual” approach.
That does not bode well for millions of new borrowers – and those whose loans are tied to Bank rates – though deals for things like fixed-rate mortgages have eased in line with the two interest rate cuts announced by the Bank to date in 2024.
Read more:
Transport Secretary resigns after mobile phone guilty plea
First glimpse inside restored Notre-Dame cathedral
Separate figures released earlier in the morning by the Bank suggested confidence remained that borrowing costs were on a downward path, however, as mortgage approvals and lending rose in October.
The number of mortgages approved was at its highest level since August 2022, the data showed.
However, a slight drop in demand for consumer credit and higher savings rates also suggested continued caution over the slowing economic outlook.
It is further evidence of caution among households in the run-up to the budget which, the government had warned, would be “tough”.
Andrew Tate and his brother Tristan Tate have been charged with rape and other offences in the UK.
Andrew Tate, 38, faces 10 charges, including rape, actual bodily harm, human trafficking and controlling prostitution for gain, relating to three women.
His brother Tristan Tate, 36, faces 11 charges relating to one woman – including rape, actual bodily harm and human trafficking.
The charges were authorised in January 2024, but full details have only been released now.
Bedfordshire Police issued an international arrest warrant for the brothers over allegations, which they “unequivocally deny”, said to have occurred between 2012 and 2015.
The Tate brothers are facing separate allegations of trafficking minors, sexual intercourse with a minor and money laundering in Romania.
They are also accused of human trafficking and forming a criminal gang to sexually exploit women in a different case, which has been sent back to prosecutors.
They are due to be extradited to the UK following the conclusion of proceedings in Romania.
Andrew Tate and his brother Tristan outside a Bucharest court in January. File pic: Inquam Photos/Octav Ganea via Reuters
A Crown Prosecution Service (CPS) spokesperson said: “We can confirm that we have authorised charges against Andrew and Tristan Tate for offences including rape, human trafficking, controlling prostitution and actual bodily harm against three women.
“These charging decisions followed receipt of a file of evidence from Bedfordshire Police.
“A European Arrest Warrant was issued in England in 2024, and as a result the Romanian courts ordered the extradition to the UK of Andrew and Tristan Tate.”
The spokesperson added: “However, the domestic criminal matters in Romania must be settled first.
“The Crown Prosecution Service reminds everyone that criminal proceedings are active, and the defendants have the right to a fair trial.
“It is extremely important that there be no reporting, commentary or sharing of information online which could in any way prejudice these proceedings.”
Read more from Sky News:
New footage of Liverpool collision
Cummings says Badenoch will be ousted
UK has sunniest spring on record
Representatives for Andrew Tate have been contacted by Sky News for comment.
Lawyer Matt Jury, of McCue Jury & Partners, representing several alleged British victims of Andrew Tate, said: “We welcome the clarity from the Crown Prosecution Service that our authorities are working to ensure the Tates face justice here in the UK – they cannot be allowed to escape extradition.
“At the same time, we ask once more that CPS admit its mistake in failing to prosecute Tate when he lived in the UK and finally charge him for the rape and assault of the other three women, our clients, who originally filed criminal complaints against him as long ago as 2014 but were failed by the system.
“They deserve justice, too.”
The allegations were subject to a police investigation, which was closed in 2019.
Merseyside Police has been given more time to question a 53-year-old man arrested over the Liverpool parade collision.
The suspect is being held on suspicion of attempted murder, dangerous driving and drug driving after a car was driven into a crowd at Liverpool FC’s victory parade on Monday.
Police have said the extra time they have been given to question the suspect runs into Thursday.
The force believes the vehicle which struck pedestrians on Water Street had followed an ambulance crew that was attending to someone suffering a heart attack, after a road block was temporarily lifted.
Earlier, new footage emerged showing a car being driven into the crowd as panicked fans watched in horror and tried to avoid being hit.
The CCTV footage showed supporters attempting to move out of the way as the vehicle ploughed into supporters.
Cries could be heard from the crowd – before police and members of the public chased after the car.
In an update on Wednesday, Merseyside Police said it was in contact with 79 people who were injured in the crash – an increase on the 65 people who were confirmed injured in the force’s previous update.
Seven people remain in hospital in a stable condition following the collision, the force added.
Please use Chrome browser for a more accessible video player
Moment car drives into crowds in Liverpool
Detective Superintendent Rachel Wilson said: “I’m pleased to say that the number of people in hospital is reducing as they continue to recover from the awful incident.
“We continue to support those still receiving treatment and as part of our ongoing enquiries we are identifying more people who were injured.
“I want to reassure the public of Merseyside that detectives are making significant progress as we seek to establish the full circumstances that led to what happened.”
Water Street where the collision happened has reopened. Pic: Reuters
Pic: Reuters
DS Wilson said that “extensive CCTV enquiries” were being carried out across Liverpool to “establish the movements of the car, a Ford Galaxy, before the incident took place”.
She added: “We have already had an incredible response from many of those who were there on the day, and I thank them for their co-operation with our investigation.
“I would encourage anyone who has not yet contacted police who may have information on this incident to do so.
“An extensive investigation into the precise circumstances of the incident is ongoing, and we continue to ask people not to speculate on the circumstances surrounding the incident and refrain from sharing distressing content online.”
Read more:
Liverpool parade reconstructed
Why police released ‘unprecedented’ details about suspect
Parade victim says he’s been left ‘traumatised’
Emergency service on Water Street after the collision. Pic: Reuters
It comes after Water Street was reopened to vehicles and pedestrians on Wednesday after the police cordon was lifted.
Street cleaning teams worked overnight to clear the road, which had been littered with bottles, cans and football scarves and flags.
One remaining Liverpool flag was removed from the top of a set of traffic lights by a worker wearing hi-vis.
👉 Listen to Sky News Daily on your podcast app 👈
On Tuesday night, Liverpool manager Arne Slot decided not to attend the League Managers Association’s annual awards ceremony “in solidarity with those affected by the incident on Monday”.
Meanwhile, speaking at an awards ceremony on Tuesday, former Liverpool boss Jurgen Klopp said the collision on Water Street “showed the two faces of life”.
Please use Chrome browser for a more accessible video player
Klopp sends ‘thoughts and prayers’ to victims
He said: “The most beautiful face for a long, long time: the parade was incredible, the mood was incredible and from one second to another everything changed and we learned again there are more serious things in the world than football.
“Thoughts and prayers go to the injured people and their families as well.
“It should have been one of the greatest days in the history of the city, after a long, long time, because we didn’t have the opportunity to do it last time. I don’t know how and why it happened but we know what happened and that’s very bad.”
The heartbroken mother of a Scottish teenager who vanished three weeks ago has told Sky News she fears he could have been “picked up in a car”.
Cole Cooper, 19, was last seen by an old school friend on Wednesday 7 May in the village of Longcroft near Falkirk.
Prior to that, he was captured on CCTV a few days earlier after leaving a house party in the area.
His mum, Wendy Stewart, 42, allowed Sky News into her home as she revealed the pain her family is enduring.
Cole’s mother Wendy Stewart (L) and his aunt Aimee Tennie
Wiping away tears, Ms Stewart said: “I don’t know what’s happened. He has not been seen. Is it a possibility he has been picked up by a car?
“I don’t want to start speculating but I just want answers. Somebody please come and tell us.”
She added: “It’s total heartache. It’s just so surreal. Is this actually happening? I have been wanting to wake up and it’s just been a big nightmare.”
Pic: Police Scotland
Cole’s family say the joinery apprentice recently started up his own fencing and decking business, which was thriving.
His aunt Aimee Tennie who has arranged community searches and erected missing posters, has said he is a popular young man who enjoys karaoke.
The 32-year-old told Sky News: “He is well liked. He is well respected. He is a lovely boy. If he is out there, we want you to come home.
“We want answers. We miss you. We love you.”
Pic: Police Scotland
Pic: Family handout
Police Scotland said more than 220 properties have been visited and more than 1,000 hours of CCTV footage collected as part of the force’s efforts to find the teenager.
Specialist resources from across the country have been mobilised to help, including the police helicopter and drones from the air support unit, as well as officers from the dive and marine unit.
Ms Stewart said she would not lose hope of finding her son.
She said: “I am still praying that we get the outcome that we want which is Cole to come back home with us and to make more happy memories.”
Read more from Sky News:
New footage shows Liverpool parade collision
Hunt for man wanted in connection with murder
Cole was reported missing on Friday 9 May.
Police said he was earlier captured on CCTV in the Longcroft area at about 6am on Sunday 4 May.
The last confirmed sighting was at 8.45pm on the A803 at its intersection with Cumbernauld Road, Longcroft, on Wednesday 7 May.
Police Scotland said an incident and welfare support unit will remain in the area while extensive searches and door-to-door enquiries continue.
An online portal has also been set up to allow members of the public to submit information directly to the investigating officers.
Cole – who has links to the Denny, Cumbernauld and Paisley areas – has been described as around 5ft 10in, of medium build, with short brown hair.
He was last seen wearing a black puffer-style jacket with black jogging bottoms.
Chief Inspector Alex Hatrick said there was “a lot of work going on behind the scenes” to find the teenager.
He added: “While this may not be as visible, please be assured we are working tirelessly to find Cole.”
Speaking to Sky News, the police chief said there had been no evidence of criminality.
“This is very much a missing person enquiry,” he added.
“There’s no information to suggest that Cole’s come to any harm at this time. Our focus is very much on tracing Cole safe and well.”
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike
-
Business3 years agoBank of England’s extraordinary response to government policy is almost unthinkable | Ed Conway