The Latest Breaking News from The Bank of England

A surprise slowing in inflation has boosted hopes that mortgage rates could ease

Chancellor of the Exchequer Rachel Reeves said she will ‘fight every day’ to improve people’s living standards.

UK borrowing costs have risen rapidly to their highest level since the banking crisis of 2007-08, with implications for the government’s tax and spending plans. Yields on gilts, as UK government bonds are called, have been rising – and these yields are effectively the level of interest that the government…

Sir John Gieve, former Deputy Governor at the Bank of England, said the Chancellor may have to hike taxes or impose some ‘very severe reductions and squeezes’ on public services

Labour’s fiscal rules may limit the chancellor’s ability to act, but waiting it out may be the best option

Sarah Breeden, the Bank’s deputy governor for financial stability, also said firms might respond to the tax rises by cutting staff or raising prices.

Unlike 2022, bond markets have not been shocked, but the chancellor will know threat of a doom loop is not far away

Shares in 200-year-old British firm jump by as much as 12% after conditional offer from City financier

High government borrowing costs come amid fears that inflation is creeping up again, which could lead the Bank of England to keep rates on hold