The Bank of England has raised interest rates for the fourteenth successive time, lifting its official rate to 5.25%.
The quarter percentage point increase was somewhat smaller than some economists had expected, following the release of lower-than-anticipated inflation data last month.
“Inflation is falling and that’s good news,” said the Bank’s governor Andrew Bailey.
“We know that inflation hits the least well off hardest and we need to make absolutely sure that it falls all the way back to the 2% target. That’s why we’ve raised rates to 5.25% today.”
However, while the Bank’s forecasts do not imply a recession in the coming years, they paint the picture of an economy which is both weaker than previously forecast and effectively flatlining all the way through to 2026.
This is, said the Bank, in large part because of the fact that interest rates are expected to remain at high levels for considerably longer than markets previously anticipated.
While the Bank itself doesn’t deliver its own interest rate forecasts, it dropped a heavy hint that it does expect borrowing costs to stay high for some time, saying in the minutes to its policy meeting that: “The [Monetary Policy Committee] would ensure that Bank Rate was sufficiently restrictive for sufficiently long to return inflation to the 2% target sustainably in the medium term, in line with its remit.”
The nine-person MPC was split on today’s decision, with two members (Catherine Mann and Jonathan Haskel) voting for a bigger increase and one member (Swati Dhingra) voting to keep rates on hold.
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The Bank of England has increased the base interest rate from 5% to 5.25%, which is the highest interest rate rise since March 2008.
However, economists and financial markets are betting on further increases, with markets pricing in a peak of 5.75% or slightly higher.
The Bank’s forecasts indicate that the prime minister is likely to meet his pledge to halve inflation by the end of the year, pointing towards a rate of around 4.9% in the final quarter (the government’s pledge implies a rate of 5.4%).
However, considerably uncertainty remains, with around a 20% chance of a higher figure.
While the Bank’s forecast for gross domestic product (GDP) growth in the year to the third quarter is slightly higher than before (0.8% rather than the 0.6% it forecast in May), it is still far weaker than what would be considered “trend growth”.
Moreover, the GDP forecast for the same period in 2024 was also cut from 0.6% to 0.3%, as was the relevant forecast in 2025 (from 0.8% to 0.3%). All told, they add up to a long period of insipid economic growth.
Chancellor Jeremy Hunt said, “If we stick to the plan, the Bank forecasts inflation will be below 3% in a year’s time without the economy falling into a recession.
“But that doesn’t mean it’s easy for families facing higher mortgage bills so we will continue to do what we can to help households.”
Labour’s shadow chancellor Rachel Reeves said: “This will be incredibly worrying for households across the country.”
“Responsibility for this crisis lies with the Tories. They’ve crashed our economy leaving working people worse off.
“Labour’s plans will boost growth and get bills down.”
Gregg Wallace has thanked people for their “support” in a video posted on Instagram after he stepped down from MasterChef over allegations he made inappropriate sexual comments on a range of programmes over 17 years.
In the short video clip, the MasterChef host said: “I would like to thank all the people getting in touch, reaching out and showing their support. It’s good of you.
“Thank you very much.”
Broadcaster Kirsty Wark is among 13 people who have made claims, with Wallace being investigated by MasterChef’s production company Banijay UK.
In an interview with the BBC, the Newsnight presenter, who was a celebrity contestant on MasterChef in 2011, claimed Wallace used “sexualised language”.
“There were two occasions in particular where he used sexualised language in front of a number of people and it wasn’t as if anyone engaged with this. It was completely one-way traffic,” Wark said.
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Gregg Wallace has thanked people for their ‘support’ in a video posted on Instagram after he stepped down from MasterChef.
“I think people were uncomfortable and something that I really didn’t expect to happen.”
Sky News has contacted Wallace’s representative for comment.
Wallace avoided questions when asked by Sky News about the claims.
‘Fully cooperating’
Banijay UK said the complaints were made to the BBC this week by “individuals in relation to historical allegations of misconduct while working with Gregg Wallace on one of our shows”.
The company said the 60-year-old, who has been a co-presenter and judge of the popular cooking show since 2005, was “committed to fully cooperating throughout the process”.
“Whilst these complainants have not raised the allegations directly with our show producers or parent company Banijay UK, we feel that it is appropriate to conduct an immediate, external review to fully and impartially investigate,” the company said.
“While this review is under way, Gregg Wallace will be stepping away from his role on MasterChef and is committed to fully co-operating throughout the process.
“Banijay UK’s duty of care to staff is always a priority and our expectations regarding behaviour are made clear to both cast and crew on all productions, with multiple ways of raising concerns, including anonymously, clearly promoted on set.
“Whilst these are historical allegations, incidences brought to our attention where these expectations are not met, are thoroughly investigated and addressed appropriately.”
A BBC spokesman said: “We take any issues that are raised with us seriously and we have robust processes in place to deal with them.
“We are always clear that any behaviour which falls below the standards expected by the BBC will not be tolerated.
“Where an individual is contracted directly by an external production company we share any complaints or concerns with that company and we will always support them when addressing them.”
The TV star’s lawyers say “it is entirely false that he engages in behaviour of a sexually harassing nature”, BBC News reports.
Previous investigation
Last month, Wallace responded to reports that a previous BBC review had found he could continue working at the corporation following reports of an alleged incident in 2018 when he appeared on Impossible Celebrities.
Wallace said those claims had been investigated “promptly” at the time and said he had not said “anything sexual” while appearing on the game show more than half a decade ago.
In an Instagram post following an article in The Sun newspaper, he wrote: “The story that’s hitting the newspapers was investigated promptly when it happened six years ago by the BBC.
“And the outcome of that was that I hadn’t said anything sexual. I’ll need to repeat this again. I didn’t say anything sexual.”
Alongside MasterChef, Wallace presented Inside The Factory for BBC Two from 2015.
Wallace has featured on various BBC shows over the years, including Saturday Kitchen, Eat Well For Less, Supermarket Secrets, Celebrity MasterChef and MasterChef: The Professionals, as well as being a Strictly Come Dancing contestant in 2014.
He was made an MBE for services to food and charity last year.
Recorded episodes of MasterChef: The Professionals featuring Wallace will be transmitted as planned, the PA news agency understands.
Transport Secretary Louise Haigh has admitted pleading guilty to an offence connected with misleading the police while a parliamentary candidate in 2014, Sky News can reveal.
Sky News understands Ms Haigh appeared at Camberwell Green Magistrates’ Court six months before the 2015 general election, after making a false report to officers that her mobile phone had been stolen.
Ms Haigh said she was “mugged while on a night out” in 2013. She then reported the incident to the police and gave officers a list of items she believed had been taken – including a work mobile phone.
In a statement to Sky News, the transport secretary said she discovered “some time later” that “the mobile in question had not been taken”.
She added: “In the interim, I had been issued with another work phone.”
The transport secretary said: “The original work device being switched on triggered police attention and I was asked to come in for questioning.
“My solicitor advised me not to comment during that interview and I regret following that advice.
“The police referred the matter to the CPS and I appeared before Southwark magistrates.”
Ms Haigh continued: “Under the advice of my solicitor I pleaded guilty – despite the fact this was a genuine mistake from which I did not make any gain.
“The magistrates accepted all of these arguments and gave me the lowest possible outcome (a discharge) available.”
It’s understood her conviction is now classified as ‘spent’.
However, three separate sources claimed she made the false report to benefit personally, with two of the sources alleging she wanted a more modern work handset that was being rolled out to her colleagues at the time.
The now cabinet minister had been working as a public policy manager at Aviva, but two sources said she lost her job at the insurance firm because of the incident.
Her government profile states she left this role in 2015 before becoming the MP for Sheffield Heeley at that year’s general election.
Sky News understands the incident was disclosed in full when Ms Haigh was appointed to the shadow cabinet.
In the statement given to Sky News, the transport secretary said: “I was a young woman and the experience was terrifying.”
Conservative Party Chairman Nigel Huddleston told Sky News the revelations are “extremely concerning”.
He added: “Keir Starmer has serious questions to answer regarding what he knew and when about the person he appointed as transport secretary admitting to having misled the police.”
Before entering politics, the transport secretary was a special constable in the Metropolitan Police – serving between 2009 and 2011 in the South London Borough of Lambeth, close to where she was convicted several years later.
She was appointed shadow policing minister by Jeremy Corbyn in 2017 and frequently drew on her experience in the Met when challenging the Tory government on the rising demands on officers.
As transport secretary, Ms Haigh appoints members of the board that oversees the British Transport Police.
In 2019 she said that Boris Johnson had “deceived the police” and committed a “serious breach of trust” over claims he politicised serving officers during a speech in West Yorkshire.
Sir Keir Starmer promoted the Sheffield MP to shadow Northern Ireland secretary in 2020 before moving her to shadow transport secretary in 2021.
But she was publicly rebuked by Sir Keir who said her opinions were “not the view of the government”.
With connections to former Downing Street chief of staff Sue Gray, there has been speculation her cabinet role could be under threat in a future reshuffle.
Ms Gray’s son, Labour MP Liam Conlon, is Ms Haigh’s parliamentary private secretary and acts as her “eyes and ears” in parliament, while another of her former employees also worked for the former chief of staff before she was sacked after losing a power struggle within Number 10.
As transport secretary, Ms Haigh was one of a handful of cabinet ministers who complained to the Treasury about impending cuts in the budget.
She is considered to be one of the more left-wing members of the cabinet and has vowed to “rip up the roots of Thatcherism” with her plans for rail and bus reform.
In 2015, Ms Haigh was one of a number of Labour MPs to nominate Mr Corbyn for leader – a decision she later said she regretted.
MasterChef host Gregg Wallace has stepped down over allegations he made a series of inappropriate sexual comments on a range of programmes over 17 years.
Broadcaster Kirsty Wark is among 13 people who have made claims, with Wallace being investigated by MasterChef’s production company Banijay UK.
In an interview with the BBC, the Newsnight presenter, who was a celebrity contestant on MasterChef in 2011, claimed Wallace used “sexualised language”.
“There were two occasions in particular where he used sexualised language in front of a number of people and it wasn’t as if it was anyone engaged with this,” Wark said.
“It was completely one-way traffic. I think people were uncomfortable and something that I really didn’t expect to happen.”
Sky News has contacted Wallace’s representative for comment.
‘Fully cooperating’
Banijay UK said the complaints were made to the BBC this week by “individuals in relation to historical allegations of misconduct while working with Gregg Wallace on one of our shows”.
The company said the 60-year-old, who has been a co-presenter and judge of the popular cooking show since 2005, was “committed to fully cooperating throughout the process”.
“Whilst these complainants have not raised the allegations directly with our show producers or parent company Banijay UK, we feel that it is appropriate to conduct an immediate, external review to fully and impartially investigate,” the company said.
“While this review is under way, Gregg Wallace will be stepping away from his role on MasterChef and is committed to fully co-operating throughout the process.
“Banijay UK’s duty of care to staff is always a priority and our expectations regarding behaviour are made clear to both cast and crew on all productions, with multiple ways of raising concerns, including anonymously, clearly promoted on set.
“Whilst these are historical allegations, incidences brought to our attention where these expectations are not met, are thoroughly investigated and addressed appropriately.”
A BBC spokesman said: “We take any issues that are raised with us seriously and we have robust processes in place to deal with them.
“We are always clear that any behaviour which falls below the standards expected by the BBC will not be tolerated.
“Where an individual is contracted directly by an external production company we share any complaints or concerns with that company and we will always support them when addressing them.”
Previous investigation
Last month, Wallace responded to reports that a previous BBC review had found he could continue working at the corporation following reports of an alleged incident in 2018 when he appeared on Impossible Celebrities.
Wallace said those claims had been investigated “promptly” at the time and said he had not said “anything sexual” while appearing on the game show more than half a decade ago.
In an Instagram post following an article in The Sun newspaper, he wrote: “The story that’s hitting the newspapers was investigated promptly when it happened six years ago by the BBC.
“And the outcome of that was that I hadn’t said anything sexual. I’ll need to repeat this again. I didn’t say anything sexual.”
Alongside MasterChef, Wallace presented Inside The Factory for BBC Two from 2015.
Wallace has featured on various BBC shows over the years, including Saturday Kitchen, Eat Well For Less, Supermarket Secrets, Celebrity MasterChef and MasterChef: The Professionals, as well as being a Strictly Come Dancing contestant in 2014.
He was made an MBE for services to food and charity last year.
Recorded episodes of MasterChef: The Professionals featuring Wallace will be transmitted as planned, the PA news agency understands.