Interest rates cut to 4% as UK inflation picks up

The Bank of England has voted to cut the base interest rate to 4% (Yui Mok/PA)

UK interest rates have been cut to their lowest level since March 2023 despite the Bank of England predicting a sharp rise in inflation amid accelerating food prices.

The central bank chose to reduce interest rates to 4% from 4.25%, pointing towards a recent fall in wage inflation and reduced uncertainty over the impact of US tariffs.