Interest rate hits ‘shock’ 5% after 0.5 percentage point increase

Published

2 years ago

June 22, 2023

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The Bank of England has shocked economists and investors by raising interest rates half a percentage point to 5% – the highest level since 2008.

Economists had expected the Monetary Policy Committee to raise interest rates by only a quarter percentage point, but the MPC voted 7-2 for the surprise increase, explaining that it was aiming to bring higher-than-expected inflation under control.

It comes after the UK’s official inflation rate failed to fall as expected in May, staying at 8.7% – well above the bank’s 2% target.

In the minutes alongside the decision, the bank said higher inflation, especially services inflation, meant it had to act faster to bring prices under control.

However, with other major central banks around the world now slowing the pace at which they’re increasing interest rates, the move will be seen as a further sign that Britain is becoming something of an outlier.

The UK has higher inflation than any other country in the G7 and is expected to see its interest rates peak higher than other major economies.

Markets expect the bank to carry on raising borrowing costs in the coming months, with interest rates slated to peak at around 6% at the turn of the next year.

In its minutes, the bank reiterated that “If there were to be evidence of more persistent pressures [in inflation], then further tightening in monetary policy would be required.”

Two of the MPC members, Swati Dhingra and Silvana Tenreyro, voted to leave interest rates on hold at 4.5%, warning that inflation was likely to fall rapidly in the coming months, and that the full impact of higher bank interest rates had yet to be felt by the wider economy.

However the rest of the committee voted for the half percentage point increase – an increase which none of the economists recently surveyed by financial news outlets had expected.

“There had been significant upside news in recent data that indicated more persistence in the inflation process, against the background of a tight labour market and continued resilience in demand,” the minutes said.

Some will ask, however, whether this faster-than-expected increase will raise the chances of the UK tipping into recession in the coming months.

The Bank has yet to update its own forecasts to reflect this – that will happen next month.

Mortgage pain

Today’s announcement paves the way for more expensive mortgage bills.

Anyone with a tracker mortgage will feel the effect of rises immediately as their mortgage rate is tied to the bank’s base rate.

For those moving to a fixed rate mortgage they may already have had to sign on to a more costly deal.

Shadow chancellor Rachel Reeves accused Jeremy Hunt and Rishi Sunak of “burying their heads in the sand” about the mortgage misery facing householders.

“Families across Britain will be desperately worried about what today’s interest rate rise might mean for them,” she said.

“They want to know that support will be there if they need it.

“Instead, the Chancellor and Prime Minister are burying their heads in the sand and failing to clean up the mess this Tory government has made.”

Government reaction

Chancellor Jeremy Hunt said. “High inflation is a destabilising force eating into pay cheques and slowing growth.”

“Core inflation is higher in 14 EU countries and interest rates are rising around the world, but the lesson from other countries is that if you stick to your guns, you bring inflation down.

“Our resolve to do this is watertight because it is the only long-term way to relieve pressure on families with mortgages. If we don’t act now, it will be worse later”.

UK

How a cup of coffee led Sky News to a sex offender on the run

Published

12 hours ago

November 8, 2025

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How a cup of coffee led Sky News to a sex offender on the run

It started with a strong espresso in a simple cafe on a side street in north London.

Several Algerian men were inside, a few others were outside on the pavement, smoking.

I’d been told the wanted prisoner might be in Finsbury Park, so I ordered a coffee and asked if they’d seen him.

They were happy to tell me that some of them knew Brahim Kaddour-Cherif – the 24-year-old offender who was on the run.

One of the customers revealed to me that he’d actually seen him the night before.

“He wants to hand himself to police,” the friend said candidly.

This was the beginning of the end of a high-profile manhunt.

The Algerian convicted sex offender had been at large since 29 October, after he was mistakenly released from HMP Wandsworth in south London.

Within an hour of meeting the friend in the cafe, he had followed myself and camera operator Josh Masters to a nearby street.

We weren’t yet filming – he didn’t want any attention or fuss surrounding him.

“Follow me, he’s in the park,” the man told me.

“Follow – but not too close.”

We did.

I was in the same park a few weeks ago after fugitive Hadush Kebatu, the Ethiopian sex offender – also wrongly released from prison – was arrested in Finsbury Park.

It was odd to be back in the same spot in such similar circumstances.

Read more on Tom’s story:
Wrongly released prisoner’s angry reaction
‘I’m glad he’s been arrested‘

As he led us through the park past joggers, young families and people playing tennis, the man headed for the gates near Finsbury Park station.

All of a sudden, two police officers ran past us.

The Met had received a tip-off from a member of the public.

It was frantic. Undercover officers, uniformed cops, screeching tyres and blaring sirens. We were in the middle of the manhunt.

As they scoured the streets at speed, we walked by some of the Algerian men I’d seen in the cafe.

One man near the group was wearing green tracksuit bottoms, a beanie hat and had glasses on.

“It’s him, it’s him,” one of the other men said to me, gesturing towards him.

The man in the beanie then quickly turned on his heel and walked off.

“It’s him, it’s him,” another guy agreed.

The suspect was walking off while the police were still searching the nearby streets.

Josh and I caught up with him and I asked directly: “Are you Brahim?”

You may have watched the exchange in the Sky News video – he was in denial, evasive and pretended the suspect had pedalled off on a Lime bike.

I can only guess he knew the game was up, but for whatever reason, he was keeping up the lie.

Moments later, one of the bystanders told me “it is him” – with added urgency.

Only the prisoner knows why he then walked up to the nearby police van – officers quickly moved to handcuff him and tell him why he was being arrested.

Over the next 10 minutes, he became agitated. His story changed as I repeatedly asked if he had been the man inside HMP Wandsworth.

Officers needed confirmation too – one quickly pulled out a smartphone and checked an image of the wanted man from one of Sky News’ online platforms.

“It’s not my f****** fault, they release me!” he yelled at me.

The search was over, the prisoner cage in the back of the van was opened and he was guided in.

I then spoke to another Algerian man who had tipped off the police – he told me he hated sex offenders and the shame he felt over the whole episode.

The community had done the right thing – there were two tip-offs – one to me, one to the police.

The farce of this manhunt had gone on long enough.

UK

Nadjib, who tipped off police over released prisoner Brahim Kaddour-Cherif, tells Sky News he’s ‘happy to see him arrested’

Published

12 hours ago

November 8, 2025

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Nadjib, who tipped off police over released prisoner Brahim Kaddour-Cherif, tells Sky News he's 'happy to see him arrested'

“It’s him, it’s him, it’s him”, the man told me urgently.

While police were frantically searching in Finsbury Park for wanted sex offender Brahim Kaddour-Cherif, locals were telling me where he was.

Immediately after the dramatic arrest, filmed exclusively by Sky News we spoke to the North African man who tipped off the police.

Nadjib had been on the lookout for the convicted sex offender, who had been spending time in different parts of north London since his release from HMP Wandsworth.

He even had a folded-up newspaper clipping in his pocket so that he could check the picture himself.

He told Sky News he was “very happy when he got arrested”.

“I don’t like the sex offenders,” he said.

“I know him from the community. He has been around here every night since he was released from prison.”

Not only did he tip the police off about the prisoner’s whereabouts, but he also witnessed the other high-profile manhunt that ended in the same park last month.

Ethiopian asylum seeker Hadush Kebatu was also arrested in Finsbury Park after a 48-hour manhunt in the capital. He was then deported to Ethiopia.

“When he [Kebatu] got arrested in the park I was there,” Nadjib said.

I asked him why both men ended up in the same park in north London.

“Because the community, he came here for the community of Algerians,” he said.

Several Algerian people that I spoke to on Friday told me how shameful they thought it was that this sex offender was still on the run.

“Job done,” Nadjib said, before walking off.

UK

Alice Figueiredo: NHS trust and ward manager to be sentenced – over a decade after young patient’s death

Published

12 hours ago

November 8, 2025

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Alice Figueiredo: NHS trust and ward manager to be sentenced - over a decade after young patient's death

An NHS trust and a ward manager will be sentenced next week for health and safety failings – more than a decade after a young woman died in a secure mental health hospital.

Warning: This article contains references to suicide.

Earlier this year, a jury found the North East London NHS Foundation Trust and ward manager Benjamin Aninakwa did not do enough to prevent Alice Figueiredo from killing herself.

The decisions were reached after the joint-longest jury deliberation in English legal history.

Alice was 22 years old when she took her own life at London’s Goodmayes Hospital in July 2015.

Her parents sat through seven months of difficult and graphic evidence – and told Sky News the experience retraumatised them.

Jane Figueiredo said: “It’s very distressing, because you know that she’s been failed at every point all the way along, and you’re also reliving the suffering that she went through.

“It’s adding trauma on top of the wound that you’ve already got, the worst wound you can imagine, of losing your child.”

Alice’s stepfather Max said he remains “appalled” that she died in a place they thought would care for her.

“The fact we have these repeated deaths of very young people in secure mental health units shocks me to the core. How can society look at that event and portray it as something that happens as a matter of course?”

Ms Figueiredo said Alice had predicted her own death.

“She said to us – out of fear really: ‘The only way I’m going to leave this ward is in a body bag.’

“It’s because she did not feel safe.”

In a statement, the North East London NHS Foundation Trust said: “We are deeply sorry for Alice’s death, and we extend our heartfelt condolences to her family and loved ones.

“We have taken significant steps to continually improve the physical and social environment, deliberately designed to support recovery, safety, wellbeing, and assist our workforce in delivering compassionate care.”

For Alice’s family, the convictions have brought some justice, but they will never have complete closure.

“As a mum your bereavement doesn’t ever end, it changes over years as you go on, but it’s unending. The thought I won’t even hear her voice is unbearable and I still miss it. I still miss her voice,” Ms Figueiredo said.

Anyone feeling emotionally distressed or suicidal can call Samaritans for help on 116 123 or email jo@samaritans.org in the UK. In the US, call the Samaritans branch in your area or 1 (800) 273-TALK.