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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. The Bank interest rate is no higher than it was 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 the Bank rate at 5.25% is delivering medicine to the economy, bearing down on spending and, the Bank hopes, inflation.

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Sky’s Ed Conway reacts to rate hold

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 the interest rate. The decision today was so finely balanced that many will wonder whether it will still go ahead and hike the rate 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.

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Gender testing rules would have earned me an Olympic medal, says former UK athlete Lynsey Sharp

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Gender testing rules would have earned me an Olympic medal, says former GB athlete Lynsey Sharp

Former British athlete Lynsey Sharp has told Sky News she would have won a bronze medal at the Rio Olympics in 2016 had today’s gender testing rules been in place then.

Sharp came sixth in the women’s 800m final behind three now-barred athletes with differences in sexual development (DSD).

She told sports presenter Jacquie Beltrao the sport has changed considerably from when she was competing.

“Sometimes I look back and think I could have had an Olympic medal, but I gave it my all that day and that was the rules at the time,” she said.

“Obviously, I wish I was competing nowadays, but that was my time in the sport and that’s how it was.”

Gold medallist Caster Semenya, with Lynsey Sharp and Melissa Bishop at the women's 800m final at the 2016 Rio Olympics. Pic: Reuters
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Gold medallist Caster Semenya, with Lynsey Sharp and Melissa Bishop at the women’s 800m final at the 2016 Rio Olympics. Pic: Reuters

The Rio women’s 800m final saw South Africa’s Caster Semenya take gold, with Burundi’s Francine Niyonsaba and Margaret Wambui winning silver and bronze respectively. All three would have been unable to compete today.

Semenya won a total of two Olympic gold medals before World Athletics introduced rules limiting her participation in the female class.

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Caster Semenya, Francine Niyonsaba and Margaret Nyairera at the women's 800m final at the 2016 Rio Olympics. Pic: Reuters
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Caster Semenya, Francine Niyonsaba and Margaret Nyairera at the women’s 800m final at the 2016 Rio Olympics. Pic: Reuters

The women's 800m final at the 2016 Rio Olympics. Pic: Reuters
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The women’s 800m final at the 2016 Rio Olympics. Pic: Reuters

In a major policy overhaul introduced this year, World Athletics now requires athletes competing in the female category at the elite level of the sport to take a gene test.

The tests identify the SRY gene, which is on the Y chromosome and triggers the development of male characteristics.

The tests replace previous rules whereby athletes with DSD were able to compete as long as they artificially reduced their testosterone levels.

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From March: Mandatory sex testing introduced for female athletes

Sharp says while she was competing, governing bodies “didn’t really deal with the issue head on”, and she was often portrayed as a “sore loser” over the issue.

Despite running a Scottish record in that race, her personal best, she described the experience as a “really difficult time”.

“Sadly, it did kind of taint my experience in the sport and at the Olympics in Rio,” she said.

Sharp added that despite the changes, it remains a “very contentious topic, not just in sport, but in society”.

Read more:
World Athletics to introduce mandatory sex testing

Caster Semenya ruling on sex eligibility case
Olympic gold medallist appeals over genetic sex testing

Boxing has now also adopted a compulsory sex test to establish the presence of a Y chromosome at this month’s world championships.

The controversial Olympic champion Imane Khelif, who won Olympic welterweight gold in Paris 2024 in the female category, did not take it and couldn’t compete.

She has appealed to the Court of Arbitration for Sport against having to take the test.

Britain's Keely Hodgkinson at the World Athletics Championships in Tokyo. Pic: Reuters
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Britain’s Keely Hodgkinson at the World Athletics Championships in Tokyo. Pic: Reuters

Sharp’s comments come as British athletics star and Olympic champion Keely Hodgkinson is tipped to win her first world title in Sunday’s women’s 800m final at the World Athletics Championships in Tokyo.

She is returning from a year out after suffering two torn hamstrings.

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Speaker makes ‘strong and punchy’ protest to home secretary over dropping of Chinese spy charges

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Speaker makes 'strong and punchy' protest to home secretary over dropping of Chinese spy charges

Commons Speaker Sir Lindsay Hoyle has protested to the home secretary after prosecutors dropped charges against two men accused of spying for China and targeting MPs.

Sir Lindsay told Sky News the decision “leaves the door open” to foreigners spying on the House of Commons, and he has written a “strong and punchy” letter to Shabana Mahmood.

The Speaker says “all avenues” must be pursued to ensure the protection of MPs and Commons staff, and he is understood to be weighing up whether to carry out a private prosecution.

The men – Christopher Cash, a former parliamentary researcher and director of the China Research Group, and Christopher Berry – were charged last April under the Official Secrets Act.

The charges related to “espionage within parliament”, security minister Dan Jarvis told MPs on Monday, in a statement after the case was dropped by the Crown Prosecution Service at the Old Bailey.

The pair were accused of targeting the China Research Group of MPs, whose leading members are former Tory security minister Tom Tugendhat, shadow home office minister and former foreign affairs committee chair Alicia Kearns, and shadow minister Neil O’Brien.

Announcing the CPS decision, a spokesperson said: “In accordance with the Code for Crown Prosecutors, the evidence in this case has been kept under continuous review and it has now been determined that the evidential standard for the offence indicted is no longer met. No further evidence will be offered.”

Mr Cash and Mr Berry, who had both previously taught in China, said after the case against them was dropped that charges should never have been brought.

Speaking outside court, Mr Cash – previously a researcher for Ms Kearns – said: “While I am relieved that justice has been served today, the last two and a half years have been a nightmare for me and my family.”

He said he hoped “lessons are learned from this sorry episode”, while his lawyer said his client was “entirely innocent and should never have been arrested, let alone charged”.

Revealing that he has now written to the home secretary, Sir Lindsay told Sky News: “As Speaker, I take the security of this House incredibly seriously. I believe this leaves the door open to foreign actors trying to spy on the House.

“This door must be closed hard. We must pursue all avenues to ensure the protection of Members and people that work within the House of Commons. It will not be tolerated.”

Ahead of Mr Jarvis’s Commons statement on Monday, Sir Lindsay told MPs: “I found out only this morning that the charges against the two individuals relating to espionage for the Chinese authorities were to be dropped. I do not think that is good.

“I ask officials to consider whether any further steps should be taken-operational, strategic, or legal-to ensure that all those who work in this parliament are able to undertake their activities securely and without interference.”

And he concluded: “I am a very unhappy Speaker with what has happened. The fact that it has taken two years, until today, for somebody to withdraw this case is not good enough.”

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Mr Jarvis told MPs: “The government remain gravely concerned about the threat of Chinese espionage. Parliament and our democracy are sacrosanct, and any attempt by any foreign power to infiltrate or interfere with parliamentary proceedings is completely unacceptable.”

He added: “This was an independent decision made by the CPS, and it is not for any government minister to speculate on the reasons behind it.

“The government are extremely disappointed with the outcome in this case, and we remain extremely concerned about the espionage threat posed to the United Kingdom.”

Responding to Mr Jarvis’s statement, Ms Kearns told MPs: “From a securities perspective, today’s events are disastrous. They will embolden our enemies and make us look unwilling to defend our own nation, even when attacked in this place, the mother of all parliaments.”

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Lib Dems toughen up immigration rhetoric as Sir Ed Davey pledges to ‘stop the boats’

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Lib Dems toughen up immigration rhetoric as Sir Ed Davey pledges to 'stop the boats'

Sir Ed Davey has pledged to “stop the boats” as the Liberal Democrats toughen up their rhetoric on immigration.

The party leader told Sky News he and his MPs will be talking about immigration during his party’s conference, which starts today, as it is a “big policy which people are concerned about”.

He also claimed the Lib Dems are the only party “taking on Reform” with different ideas on how to solve people coming to the UK in small boats.

The party’s manifesto says it would work with Europol and the French authorities to “stop the smuggling and trafficking gangs” behind the crossings, but as immigration has become one of the most contentious topics in the UK, Sir Ed appears to have hardened his tone on the subject.

Sir Ed Davey spoke to Sky News ahead of the 2025 Lib Dem autumn conference
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Sir Ed Davey spoke to Sky News ahead of the 2025 Lib Dem autumn conference

He told Sky News: “We’ll talk about how we stop the boats, how we close down the asylum hotels.

“But we’ve got thought-through policies about how you would do that in a humane way, unlike people like Farage and the Conservatives.”

Sir Ed blamed the Conservatives and Reform leader Nigel Farage for Brexit and taking the UK out of the Dublin Convention, which means asylum seekers can only make a claim in the EU country they first arrived in.

More on Liberal Democrats

He said the Lib Dems “know how we can solve” the small boats issue, as he put his party forward as the only one to take on Reform.

“We need to process the applications really quickly, deport people who have no right to be here, and if they have a right to be here, get them working so the taxpayer isn’t paying for the hotels,” he added.

“These are practical ways forward, and we’re the only party taking on Reform with different ideas for solving this.”

The Lib Dems’ tougher tone might not be enough for some


Amanda Akass

Amanda Akass

Political correspondent

@amandaakass

Bournemouth is famous for its sandy beaches, sunny weather and wholesome seaside attractions. But over the summer it also became infamous for the number of asylum seekers put up in its hotels.

This weekend, it’s also hosting the Liberal Democrats’ annual conference, and while most political parties are competing to sound tougher on illegal migration – the Lib Dems are still putting forward a more humanitarian approach, albeit with a slightly harder tone.

While today, they’re calling for the government to speed up the asylum decision-making system with ‘nightingale’ style temporary processing centres, the fundamentals of their policy do not seem to have changed.

They still want to expand the number of safe and legal routes for those escaping war and persecution, so that people can apply for asylum without crossing the channel illegally.

They’re also calling for asylum seekers to be able to work while awaiting decisions to be made on their cases.

“Anybody sensible wants a fair and effective immigration asylum system,” says Lisa Smart MP, the party’s home affairs spokesperson.

“We’ve seen Reform UK just sat shouting and sounding very angry, we’ve increasingly heard the Tories moving closer and closer to them, and Labour acting like a tribute act.

“We want a fair and effective system which treats people coming here, fleeing war and persecution, like human beings.”

Some voters I spoke to in Bournemouth told me they supported the principle of welcoming genuine refugees wanting to come to the UK to build a better life, and liked the idea of creating more safe and legal routes.

But there was also widespread scepticism about the lack of progress made by successive governments in tackling illegal migration – with many keen for a tougher approach.

Two former Lib Dem voters told me they’d been turned away from the party because of their concerns about people breaking into the country and putting pressure on its creaking infrastructure.

Recent polling suggests immigration is now the biggest concern for voters.
Luke Tryl of organisation More in Common says it could be a problem for the Lib Dems trying to broaden their appeal at the next election.

“The difference with Liberal Democrat voters is that despite the fact they have that shared view with the majority of the rest of the public (that levels of immigration should come down) it’s a less important issue for them,” he says.

“If the Liberal Democrats want to grow, if they want to go beyond last year’s election result and perhaps position themselves as a future coalition partner for the Labour Party, I think voters are going to want to see a more comprehensive offer on immigration.”

For those taking part in weekly protests outside the Roundhouse – one of three town centre hotels booked out by the Home Office for housing asylum seekers – there was considerable anger.
Many of those protesting told me they feel ignored.

“As you can see we’ve had enough,” said Mark Dean. “We can’t just sit on our sofas and say nothing and expect the country to change, because it will not.”

“I work at a homeless shelter two days a week and there are so many people who use that who have to sleep in tents on the beach,” said Sarah Turnbull.

“It’s heartbreaking to see how many people in our area are struggling just to feed themselves and we’re spending millions on illegal migrants.”

The Lib Dems are unlikely to win over many of the voters protesting outside asylum hotels. But this weekend’s conference is an opportunity to try and pitch to those uncomfortable with the right wing tilt of public debate on the issue.

We should be worried about Reform

The Lib Dem leader’s reaction to Reform, which has consistently led the opinion polls recently, has also hardened.

Since last summer’s election, the Lib Dems have generally chosen to avoid attacking Reform or Labour, with Sir Ed going for the Conservatives’ record instead.

Lib Dem insiders previously said the tactic was to let Reform implode.

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Sir Ed Davey: ‘Well I think my respect for the King isn’t under question’

However, after Mr Farage swooped in over the summer parliamentary recess with numerous headline-grabbing news conferences, Sir Ed is taking a different tactic.

He said it is still very early on this parliament, which is set to end in 2029, and the Lib Dems are building on their record result last year, which saw them gain 61 MPs for a total of 72, by doing well in May’s local elections.

Sir Ed surfing in Cornwall during the election campaign. Pic: PA
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Sir Ed surfing in Cornwall during the election campaign. Pic: PA

But, he said: “I think people should be worried about Reform.

“They represent a set of issues which I don’t think are British issues. They suck up to Donald Trump and Elon Musk. Nigel Farage thinks Vladimir Putin, the president of Russia, is the world leader he admires the most.

“Nigel wants to frack across England’s countryside. He wants to have American-style health insurance. I don’t think people want that.

“And the more Nigel Farage and Reform are exposed for what they believe in, the more people look for other parties of change.

“Clearly not Labour, the Tories – they’re not trusted, they’ve failed.

“But the Liberal Democrats have a change agenda which is true to British values, which is genuinely patriotic and which will solve the day-to-day problems that people are worried about, like health, like care, like the cost of living.”

And will Sir Ed be taking part in more stunts this conference after becoming famous for them during the election campaign? Yes he will, he confirmed, but you (and he) will have to wait and see.

The Liberal Democrat conference is taking place from 20-23 September. Sky News will be bringing you all the coverage live from Bournemouth.

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