The Bank of England has raised UK interest rates by a further half percentage point to 4%, but gave its clearest signal yet that borrowing costs may now be nearing their peak.
This was the Bank’s tenth successive interest rate increase, but in the accompanying documentation, it hinted that there is a chance it might be the last for the time being, saying that it would only raise rates further “if there were to be evidence of more persistent [inflationary] pressures” than in its forecasts.
Those forecasts suggest that inflation has now peaked, and that it will come down gradually this year and next, eventually dropping beneath the Bank’s 2% target.
“I do see the signs that we’re turning a corner, and that obviously is encouraging but there’s a long way to go,” Andrew Bailey, governor of the Bank of England, told Sky News in an interview. “There’s still some very big risks out there.”
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BoE governor explains interest rate rise
“We’re going to take it each game as it comes and look at the evidence very closely,” he added.
In raising interest rates again, the Bank pointed to wages in the private sector rising faster than anticipated.
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Chancellor agrees on rate hike
There are widespread strikes this week in the public sector as workers fight for higher wages. Mr Bailey said the Bank would be keeping a close eye on developments in this area, as they could contribute further to inflation.
“What happens going forwards on wage setting will be very important and we’ll be watching it very closely because that will be an important indicator of whether the very sharp downward path of inflation will happen,” he said.
The Bank also upgraded its general forecast for the economy on Thursday.
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While it still projects a technical recession this year, it would be a very shallow recession, with overall growth falling by 0.5% in 2023, compared with its November forecast of a 1.5% fall.
“If it emerges now, it’ll be the shallowest recession in a long long time,” Mr Bailey said.
Seven members of the nine-person Monetary Policy Committee supported the half percentage point increase, but two members – Swati Dhingra and Silvana Tenreyro – voted to leave borrowing costs on hold.
All were told that while the increase today is significant, the hints included in the Bank’s minutes represent a marked change in tone.
Previously it had said that it was ready to respond “forcefully” to higher inflation; this time, that language was removed.
Previously it had said further rate increases might be required if the economy behaved in line with their forecasts; this time it indicated that rate increases were dependent on higher inflation than in its forecasts.
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Chancellor Jeremy Hunt has said the Treasury supports the Bank of England’s decision to increase the interest rate to 4%.
The shifts in language leave the door open for some small further increases in borrowing costs but provide the firmest signal yet that UK interest rates are now at, or close to, their peak.
Outlook still weaker than in recent years
Still, while the outlook for the UK economy is better than in the Bank’s previous forecasts, it is nonetheless far weaker than in recent years.
While the average UK growth rate pre-financial crisis was around 2.5% and around 1.5% post-pandemic, the Bank expects underlying growth of just 0.7% in the coming years.
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2:42
Is Brexit to blame? The war in Ukraine? Ed Conway takes a look at why the IMF predicts the UK economy is behind any advanced nation this year
Moreover, because of the fall in national income projected this year, it now expects that the size of the economy will still be at 2019 levels in 2026 – a full seven years of lost growth.
Many other countries around the world have already exceeded their post-pandemic level; the UK, according to the Bank’s figures, is set to languish below it until the second half of this decade.
A spokesperson for the prime minister commenting on the figures said: “Inflation is the biggest threat to living standards in a generation, we support the bank’s action today. We will continue to take the decisions needed to reduce inflation.”
“This is a difficult time for mortgage holders in the UK. Inflation falling is not a given, it requires government to stick to the difficult decisions it has taken.”
On the subject of mortgage rates, Mr Bailey told Sky News that he was “hoping that we’ll see much more stability in the interest rate curve off of which mortgages are priced off.”
“That evidence is helpful, but there are a lot of people who don’t immediately benefit from that,” he added.
Jota and Silva were driving to Santander to catch a ferry back to England ahead of the start of Liverpool’s pre-season training on Monday, CNN Portugal reports.
The news outlet reports that Jota was advised against flying back to England due to recent surgery.
Police said the accident happened at 12.30am when the Lamborghini the pair were travelling in veered off the road.
Image: Palacios de Sanabria in the north of Spain
“A vehicle left the road and everything indicates a tyre burst while overtaking,” the Guardia Civil in Zamora told Sky Sports News in a statement.
“As a result of the accident, the car caught fire and both people were killed. Pending the completion of forensic tests, one of the deceased has been identified as Diogo Jota, a Liverpool FC player, and his brother, Andre Felipe.”
A Spanish government source told the PA news agency that police were investigating the crash as “a possible speeding incident”.
Image: The aftermath of the crash. Pic: AP
Image: Pic: AP
Police added that no other vehicles were involved in the incident.
Pictures of the aftermath of the crash showed debris scattered along the side of the road, including what appeared to be charred parts of the vehicle.
It comes just 10 days after the player married his long-term girlfriend, Rute Cardoso.
Image: Diogo Jota holds the Premier League trophy aloft after the club’s title win in the 2024/25 season. Pic: Reuters
Image: Diogo Jota walks the pitch with his family in 2022.
Pic: PA
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The footballer, whoplayed as a striker for Liverpool, began his career in his native Portugal and played at Atletico Madrid in Spain before moving to England.
He joined the Merseyside club from Wolverhampton Wanderers in 2020.
Image: Former Liverpool manager Jurgen Klopp with Diogo Jota. Pic: PA
Image: Portugal’s Cristiano Ronaldo (left) and Diogo Jota (right) during a training session. Pic: PA
Jota played an important role throughout his five years with the Reds, including scoring six times in Liverpool’s recent Premier League-winning season.
He scored a total of 47 times in 123 matches for the club. He also played 49 times for the Portugal national side, scoring 14 times.
Silva, 25, played for Penafiel, a Portuguese second division club.
Image: Diogo Jota holding the trophy on the team bus during the Premier League winners parade in Liverpool. Pic: PA
Teammates and football legends pay tribute
A statement issued by Liverpool FC said the club was “devastated” by their player’s death.
“The club have been informed the 28-year-old has passed away following a road traffic accident in Spain along with his brother, Andre,” the club said in a statement.
“Liverpool FC will be making no further comment at this time and request the privacy of Diogo and Andre’s family, friends, teammates and club staff is respected as they try to come to terms with an unimaginable loss.
“We will continue to provide them with our full support.”
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Sky’s Greg Milam reports from Anfield Stadium where Liverpool fans are hearing about the death of Diogo Jota.
The Portuguese football federation said it was “utterly devastated by the deaths”.
“Far beyond being an exceptional player, with nearly 50 caps for the national team, Diogo Jota was an extraordinary person, respected by all teammates and opponents, someone with a contagious joy and a reference within his own community.
“We have lost two champions. The passing of Diogo and Andre Silva represents irreparable losses for Portuguese Football, and we will do everything to honour their legacy daily.”
The Portugal and Spain women’s teams held a minute’s silence for Jota and Silva before their match in the Women’s Euros in Switzerland on Thursday evening.
Image: Floral tributes left at Anfield this morning. Pic: Sky
It came after Liverpool’s manager Arne Slot said in a statement: “What can anyone say at a time like this when the shock and the pain is so incredibly raw? I wish I had the words but I know I do not.
“All I have are feelings that I know so many people will share about a person and a player we loved dearly and a family we care so much about.
“My first thoughts are not those of a football manager. They are of a father, a son, a brother and an uncle and they belong to the family of Diogo and Andre Silva who have experienced such an unimaginable loss.”
Jota’s former manager at Liverpool, Jurgen Klopp, offered his thoughts in a post on Instagram.
“This is a moment where I struggle! There must be a bigger purpose, but I can’t see it,” he said.
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“I’m heartbroken to hear about the passing of Diogo and his brother Andre. Diogo was not only a fantastic player, but also a great friend, a loving and caring husband and father.
“We will miss you so much. All my prayers, thoughts and power to Rute, the kids, the family, the friends and everyone who loved them.”
Liverpool captain Virgil van Dijk posted on Instagram: “What a human being, what a player, but most importantly what an unbelievable family man.
“You mean so much to all of us and you always will!”
Cristiano Ronaldo, Jota’s captain in the national team, said: “It doesn’t make sense. Just now we were together in the National Team, just now you had gotten married.
“To your family, your wife, and your children, I send my condolences and wish them all the strength in the world.
“I know you will always be with them. Rest in Peace, Diogo and Andre. We will all miss you.”
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Diogo Jota married his long-term girlfriend just two weeks ago
Jota’s Liverpool teammates Darwin Nunez, Cody Gakpo and Dominik Szoboszlai have also paid tribute.
Szoboszlai wrote: “Words cannot describe how heartbroken and devastated we are… Your smile, your love for the game will never be forgotten.
“We will miss you so much, but you will stay with us forever, on and off the pitch.”
Jota’s former teammates Trent Alexander-Arnold, Sadio Mane, Roberto Firmino and Thiago Alcantara have also shared messages on social media.
Mane posted a picture of himself and Jota with heartbreak emojis.
It came as Liverpool legend Kenny Dalglish wrote on X: “You feel helpless, knowing there’s so little we can do to ease the pain for his wife of just two weeks, his three beautiful children.”
Liverpool legend Steven Gerrard shared an image of Jota on Instagram and wrote: “Condolences to his family and friends during this incredibly sad time.”
Liverpool owners Billy Hogan, John Henry and Tom Werner, who are part of the Fenway Sports Group, said: “This tragic situation and the reality of it is truly shocking, devastating and has left us numb with grief.”
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Football icon Lionel Messi has also paid tribute, sharing an image of Jota on Instagram with the message “QEPD” – short for the Spanish phrase ‘que en paz descanse’, which translates to “may he rest in peace'”.
European football clubs such as Barcelona and AC Milan have also shared messages, along with basketball player LeBron James and tennis icon Rafael Nadal.
Meanwhile Liverpool FC have opened a physical and digital book of condolence for supporters and members of the public to sign.
The physical book is at the club’s stadium, in the Anfield Road Stand reception area until Sunday evening.
An avid video gamer, Jota also owned an eSports team and regularly streamed on Twitch.
The joy that filled the final weeks of Diogo Jota’s life makes his death even more devastating to comprehend for his family and millions of fans worldwide.
The most illustrious title of his career was won in May, when he paraded through Liverpool with his teammates and the Premier League trophy.
More success came with Portugal as he won the Nations League for a second time alongside Cristiano Ronaldo in June.
And then came the bliss at marrying his childhood love Rute Cardoso, watched by their three children.
Just yesterday Jota posted a video from the ceremony on social media alongside the message “a day we will never forget”.
The happiest of days was remembered before the tragedy that killed Jota and his brother Andre Felipe in northwest Spain.
Image: Diogo Jota and wife Rute. Pic: rutecfcardoso14/Instagram
Brothers – whose careers both developed at their hometown club, Porto – so tragically dying together.
“Football has lost two great men,” Porto president Andre Villas-Boas said, as fans descended on the club’s stadium to mourn.
At Anfield, Liverpool fans are grieving the versatile forward who was so often in the shadow of Mohamed Salah, as he was under Ronaldo at Portugal.
But he knew how to sacrifice stardom to contribute to the squad.
Image: Diogo Jota holds the Premier League trophy with Wataru Endo and teammates. PIc: Reuters
The last of his 65 Liverpool goals was the winner in the Merseyside derby against neighbours Everton in April – helping the club become the record 20-time champions of England.
A Premier League winners’ medal joining those from the FA Cup and League Cup, won by the 28-year-old after he joined the Reds in 2020.
It was Wolverhampton Wanderers who gave Jota a platform to shine in England after he joined from Atletico Madrid.
Promotion was gained to the Premier League in 2018, and they more than just avoided relegation, but secured back-to-back top-seven finishes.
Jota was a reason why.
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Fans react to Jota death
He was also why Wolves could embark on such a memorable European campaign, and scored two hat-tricks in the run-up to the Europa League quarter-finals in 2020.
“The memories he created will never be forgotten,” Wolves said.
For the football world, the loss of such a talent so young will be hard to comprehend.
And so many are reflecting on the fragility of life as football grieves from Liverpool to Portugal – and beyond.
The father of a grooming victim who was raped by more than 60 men has said she still lives with the “trauma every single day”.
Marlon West, 51, said Scarlett, now 20, was an academic student at a school in Greater Manchester.
She was happy with a good friendship group and enjoyed riding her horse, Jasper.
But her life changed after she was attacked by a gang at a bus station – they started bullying her and she decided it was better to become their friends.
An older female member then started grooming her for rape gangs made up of Muslim men, her father told Sky News.
Image: Scarlett before she was groomed
Mr West said six men were involved in grooming her from the age of 14 but she was raped by more than 60 before the abuse finally stopped shortly before she turned 18.
By then, she was too terrified to leave home.
“Scarlett isn’t a survivor and a lot of these other girls aren’t survivors,” he said. “The reason being is they’re still living with the trauma every day.”
Mr West, an advanced nurse practitioner for mental health services at the NHS, said his daughter was thrown out of school aged 14 and would go missing for weeks at a time.
On one occasion, he tracked her down to a property in Derbyshire, but when he eventually persuaded police to attend, he was told Scarlett was “safe” with the woman who groomed her and “her friends”.
Image: Scarlett enjoyed riding her horse
Mr West said he was “absolutely furious” when police and social services dismissed the abuse as “a lifestyle choice” and was so desperate he put Scarlett into care when she was 15.
“I couldn’t keep her safe,” he said. “It’s the hardest decision of my life.”
But within a week of her returning home, when she had to leave the care system after turning 16, she was going missing again.
Mr West said the female groomer had stayed in contact with Scarlett and “was literally waiting for her” when she came home.
She was then trafficked all over the country, including Bradford, Birmingham and London.
Image: Marlon West and his daughter Scarlett
Mr West said he had to “scream” at police to track her down before they raided a property in Rochdale where she was found along with heroin and crack cocaine.
Scarlett was arrested and released on bail, but wasn’t charged because she was on a Home Office database as being at risk of trafficking, he said.
“Even though that [arrest] was inappropriate, that stopped it because she was terrified of going out of the house, which she still is now to a certain extent.”
Mr West believes the abuse also came to an end because she was getting older and her abusers were no longer interested.
“This is not just about child sexual exploitation but also criminal exploitation – she was doing county lines, she was picking up firearms for them,” he said.
Image: Scarlett and her dad Marlon
Mr West said any child can be at risk of grooming.
“They’re stereotyping a lot of these survivors, that they’re coming from broken homes, or they’re in care,” he said.
“A groomer doesn’t stand outside a school gate and think, ‘I’m not grooming her because her dad’s a doctor or her dad’s a GP’ – they don’t care. Once they target, that’s it.”
Mr West was speaking as a report by police watchdogs revealed Greater Manchester Police has live grooming investigations involving 714 victims and survivors.
The force said it has 1,099 lines of enquiry relating to potential suspects but only 269 who are confirmed.
“I think there’s more – a lot of survivors haven’t come forward. One, because they’re probably still being groomed and secondly because they’re terrified of GMP and how they’ve been treated in the past,” he said.
“It’s higher than it’s ever been. Services such as police and social services are terrified of political correctness.
“The groomers know they can get away with it because there aren’t many arrests and so it’s increased.”
GMP Chief Constable Sir Stephen Watson promised to go after child rapists and paedophiles “relentlessly” after the publication of the report, which was largely positive about the force’s turnaround in tackling the gangs.
But Mr West believes they are “still failing”, although he welcomed the investigation opened into his daughter’s case.
He said he is “hopeful” the national inquiry into grooming gangs by the government last month “will expose a lot of the cover-ups and give accountability” but is worried about the involvement of services such as councils and police forces because of a lack of trust.
A GMP spokesperson said: “We have met with Scarlett and her father and we’re conducting an extensive investigation into their allegations.
“While we understand the impact of their experiences cannot be undone, we aim to ensure that the experience of the GMP of today would be much improved from that of previous years.”
A Tameside Council spokesperson previously said they were legally unable to comment on Scarlett’s case.
But they said: “Where any concerns or issues are raised we work closely with individuals, families and our partners to provide support and resolve, as appropriate.
“Where individuals aren’t satisfied with the services received, we do have a statutory complaints procedure and individuals can ultimately take their complaint to the Local Government & Social Care Ombudsman.”