More UK interest rate cuts expected in 2026 after Bank of England lowers borrowing costs to near three-year low – as it happened

Some economists are predicting that the Bank of England will lower interest rates in 2026, despite its warning today that “judgements around further policy easing will become a closer call.”Simon Dangoor, deputy chief investment officer (CIO) of fixed income at Goldman Sachs Asset Management, predicts inflation won’t misbehave in 2026:‘Weak data could give the BoE scope to cut rates more than markets currently anticipate next year. The labour market continues to show signs of deterioration, and we expect inflation to remain well-behaved through 2026.If evidence continues to build confirming these trends, the MPC may adopt a more dovish stance.’ING predict two cuts in the first half of 2026, which would lower Bank rate to 3

What the UK interest rate cut means for you, from mortgage deals to savings rates

The Bank of England gave millions of borrowers an early Christmas present on Thursday when it cut interest rates from 4% to 3.75%. It is the fourth cut this year following reductions in February, May and August.For the vast majority of borrowers the answer is no: more than 7.2m (86%) of Britain’s 8

German prosecutors bring charges against Greensill officials over role in bank’s collapse

German prosecutors have brought criminal charges against three people involved in running Greensill Bank for their role in the 2021 collapse of the lender.The Bremen public prosecutor’s office said the unnamed people were charged with crimes related to the bankruptcy, as well as the misrepresentation of the German bank’s finances.The people are alleged to have circumvented banking regulations involving a €2.2bn (£1.9bn) refinancing in 2019 of steel plants owned by the Gupta Family Group Alliance (GFG), a struggling group of companies overseen by metals tycoon Sanjeev Gupta

Narrow Bank of England vote puts end of interest rate-cutting cycle in sight

Rachel Reeves has reason to be cheerful. After last month’s budget, the Bank of England cutting interest rates will come as an early Christmas tonic for the chancellor by lifting some of the pressure on hard-pressed borrowers.The City had been heavily betting on a sixth cut since August last year, and Threadneedle Street delivered with a reduction in the base rate from 4% to 3.75%. The question, however, is how much further the Bank can go to bring to an end its current easing cycle, after a painful hump in inflation over the past year

Leeds £2.5bn tram scheme delayed to late 2030s after government review

The opening of the long-awaited Leeds tram system has been pushed back by at least two to three years, after a government review of the £2.5bn project.The West Yorkshire combined authority (WYCA) said its mass transit scheme, including new tram lines connecting Leeds and Bradford, would now be completed in the late 2030s.West Yorkshire’s mayor, Tracy Brabin, said she was fully confident that she would be “driving this tram” by the end of the next decade, despite fears that the delay could lead to the whole scheme being cancelled.She said the new timeline would “help offer certainty” for the tram at the heart of plans for an integrated transport network with the region’s buses, which are being brought under local control

US prices continued to rise despite Trump claims they are ‘rapidly’ falling

US prices rose 2.7% in the year to November, according to federal data released a day after Donald Trump claimed they were falling “very fast” on his watch.The latest consumer price index, released on Wednesday morning, was down from 3% in September, and short of economists’ expectations of about 3.1% for last month.It comes amid questions over the strength of the US economy

US activist investor urges Whitbread review after budget tax changes

The owner of Premier Inn is facing calls from an American activist investor to rethink its business strategy, just weeks after the company warned the budget would cost it up to £50m next year.Corvex, a New York-based hedge fund, told Whitbread it should begin a strategic review as it braces for big tax rises next year after changes announced by the chancellor, Rachel Reeves.“Following the recently announced UK budget and changes to rateable values and business rates, we believe the company should undertake a strategic review to assess its capital allocation priorities and overall strategic direction,” the fund said in a statement.Whitbread, which also owns the restaurant chains Beefeater and Brewers Fayre, has been squeezed by higher costs this year due to higher wage bills and rising food prices. The FTSE 100 company is expected to come under further pressure as changes to the way business rates are calculated come into effect next year

Bank of England cuts interest rates to 3.75% in pre-Christmas boost for struggling economy

The Bank of England has cut interest rates by a quarter point, giving a pre-Christmas boost to the struggling UK economy, but a split vote among its rate-setters pointed to continued concerns about inflation.The Bank’s nine-member monetary policy committee (MPC) opted by five votes to four to reduce its key base rate from 4% to 3.75%, signalling that it now expects inflation to be “closer” to the 2% target in the first quarter of the new year.But minutes of the committee’s meeting cast doubt on the pace of any further rate cuts, with the Bank’s governor, Andrew Bailey, saying future decisions would be a “closer call”. It is the sixth rate cut since Labour came to power last year

Waterstones and Barnes & Noble owner looks to list booksellers on stock market

The owner of Waterstones and Barnes & Noble is reportedly preparing to list the booksellers on the stock market.Elliott Investment Management, the hedge fund that owns the most popular bookstores in the US and the UK, has spoken to potential advisers about an initial public offering (IPO), the Financial Times reported.The multibillion-pound group is thought to prefer London over New York for the listing, which could be a welcome boost to the UK stock market.While initial talks are under way, no final decisions have been made and the plans could change.The company’s financial year ends in April, which makes an IPO unlikely until after the summer at the earliest, the FT reported, citing unnamed sources close to the matter

BP names Meg O’Neill as new CEO after incumbent ousted

BP’s board has appointed its first female chief executive in a move to revive the oil company’s fortunes, after ousting Murray Auchincloss less than two years into his role.In an unexpected leadership shake-up, Auchincloss will step down as chief executive with immediate effect, but remain in an advisory role until the end of next year.Auchincloss will be succeeded by Meg O’Neill, a former ExxonMobil executive and the head of the Australian oil company Woodside Energy. Carol Howle, BP’s head of trading, will run the firm until O’Neill takes up the top job in April.The incoming oil boss will be BP’s first female chief executive in its 116-year history, and the first woman to head any of the world’s top five oil companies

UK government plays down reports of plan to bring EV sales target review forward

The government has played down reports that it is planning to bring forward the publication of a review of electric vehicle sales targets from 2027 to next year amid concerns from the car industry.The government had said in April it would weaken its zero-emission vehicle (ZEV) mandate – which was brought in to force carmakers to sell more electric cars every year or face the prospect of steep fines – after lobbying from the car industry, and planned to review the targets.“The ZEV mandate review starts next year … and of course we’d want to complete that review as quickly as we can,” the industry minister, Chris McDonald, told the Financial Times.However, a government spokesperson later said that only “preparatory work” would begin next year, with the review itself due to be published in 2027.Carmakers had argued the rules were economically unsustainable, leading the UK to introduce “flexibilities”, which allowed them to earn “credits” by selling hybrid cars, which combine a smaller battery with a petrol engine

Ineos chemicals plant is saved – but what is the strategy for the rest of heavy industry? | Nils Pratley

“Our commitment is clear: to back British industry, to stand by hardworking families, and to ensure places like Grangemouth can thrive for years to come,” said Keir Starmer as the Ineos ethylene plant on the Firth of Forth was saved for the nation with the help of £120m of public money.Is the commitment clear, though? What, precisely, does the prime minister mean by “places like Grangemouth”? Which heavy industries and plants is the government pledging to shield from the forces of sky-high energy prices and carbon taxes? Is there a strategy here? Or does intervention happen only at the 11th hour when an important plant is threatened with imminent closure and ministers panic about knock-on consequences?The ethylene plant at Grangemouth, we now know, falls within the protected camp. The government is willing to suffer any embarrassment that comes with handing a financial support package to a company controlled by a foreign-based billionaire, Sir Jim Ratcliffe.On the other hand, the oil refinery on the site was allowed to close this year and be switched to an import terminal. Meanwhile, the ethylene plant up the road at Mossmorran – a place quite like Grangemouth, one might think – is due to be shut by its owner, ExxonMobil, in February after talks with ministers came to nothing

How to turn excess yoghurt into a silky-smooth dessert – recipe | Waste not

A delicious, gelatine-free panna cotta that saves yoghurt from the waste binI was really shocked to learn from environmental action NGO Wrap that, of the 51,000 tonnes of yoghurt that’s wasted in the UK every year, half of it is in unopened pots! The reason is our old arch enemy, date labels, which can cause confusion and trick us into thinking that perfectly safe yoghurt is not OK to eat. That’s one reason many supermarkets have scrapped use-by dates on the likes of yoghurt, but they still use best-before dates. Remember, if a product doesn’t have a use-by date, always do the sniff test before throwing it away.Today’s recipe is a light, gelatine-free version of panna cotta that’s instead set with agar agar (a type of seaweed), which gives it a soft-set texture. It’s refreshing, deliciously sour and simple to make

Benjamina Ebuehi’s pistachio and cherry meringue cake recipe | The sweet spot

I’m switching up my usual Christmas pavlova this year for a slightly different but equally delicious meringue-based dessert. Discs of pistachio meringue are baked until crisp, then layered with pistachio cream and cherry compote. The meringue softens a little under the cream as it sits, giving it a pleasingly chewy, cake-like texture. A very good option if you’re after a Christmas dessert without chocolate, alcohol or dried fruit.Thanks to the viral Dubai chocolate bar, pistachio creme is quite easy to come by in most supermarkets these days; it’s already sweetened and brings a lovely, soft green colour

Australian supermarket canned peaches taste test: the winner has an ‘absurdly low price’

In a blind taste test, Nicholas Jordan tastes 14 peaches in cans and plastic jars, in juice and syrup – but only one brand is worthy of decorating a pavlovaIf you value our independent journalism, we hope you’ll consider supporting us todayGet our weekend culture and lifestyle emailBefore this taste test, it had probably been 20 years since I last ate a canned peach. But unlike most things that happened 20 years ago, I have a strong memory of the experience. Canned, tinned or any packaged peaches weren’t a staple of my childhood (neither were fresh peaches – I was too fussy to like much except plain carbs, sausages, apples and ice-cream). But somehow I remember not only eating tinned peaches but loving them, soft like panna cotta and as syrupy as a gulab jamun. Not quite the same as a fresh peach but delicious in a different way

All about the baby cheeses: how to curate a festive cheeseboard to remember

What should I serve on my Christmas cheeseboard?David, via emailIt will come as no surprise that Mathew Carver, founder of Pick & Cheese, The Cheese Barge and Rind, eats a lot of cheese, so in an effort to keep his festive selection interesting, he usually focuses on a specific area or region: “Last year, for instance, I spent Christmas in Scotland and served only local cheese.” Wales is up later this month. “I’m a creature of habit and tend always to go back to the cheeses I love, so this strategy makes me try new ones,” he explains – plus there’s nothing to stop you slipping in a classic such as comté in there too, because, well, Christmas.Unless you’re going for “the baller move” of just serving one glorious cheese, Bronwen Percival, technical director of Neal’s Yard Dairy, would punt for three or four “handsome wedges, rather than slivers of too many options”. After all, few have “the time or attention for a board that needs a lot of explaining”

Georgina Hayden’s recipe for pear, sticky ginger and pecan pudding

While our Christmas Day dinner doesn’t deviate too much from tradition, I do experiment with the dessert. My family, bar one sweet-toothed aunt, avoids dried fruit-based offerings, so classic Christmas cakes and puddings are a hard no. Over the years, I have tried variations on yule logs, pavlovas and sherry trifles, but the biggest crowdpleaser is easily sticky toffee pudding (or something along those lines). This year, I’m making this warming, simple but decadent pear, sticky ginger and pecan pudding, which feels festive and fancy, and can happily make an appearance whenever.This can be made the day before and reheated before serving

How to make nesselrode pudding – recipe | Felicity Cloake's Masterclass

A luxurious iced dessert stuffed full of boozy dried fruit, candied peel and frozen chestnut pureeThis festive, frozen chestnut puree dessert is often credited to the great 19th-century chef Antonin Carême, even though the man himself conceded that this luxurious creation was that of Monsieur Mony, chef to the Russian diplomat Count Nesselrode (albeit, he observed somewhat peevishly, inspired by one of his own chestnut puddings). It was originally served with hot, boozy custard – though I think it’s just enough as it is – and it makes a fabulous Christmas centrepiece,Prep 15 min Soak Overnight Cook 20 min Freeze 2 hr+ Serves 6125g currants, or raisins or sultanas50g good-quality candied peel, finely chopped75ml maraschino, or other sweet alcohol of your choice (see step 2)1 vanilla pod, split, or 1 tsp vanilla extract600ml whipping cream 4 egg yolks 50g caster sugar 45g flaked almonds 125g whole peeled cooked chestnuts, or unsweetened chestnut pureePut the fruit and peel in a bowl. Mony’s recipe is reported to have contained currants and raisins (though other vine fruit, or indeed any chopped dried fruit you prefer, will work), as well as candied citron, the peel of a mild, thick-skinned citrus, which is available online, as are other candied peels that are far nicer than those chewy, greasy nubs sold in supermarkets.Add the alcohol: maraschino, an Italian sour cherry liqueur, is the original choice, but Claire Macdonald uses an orange triple sec, Victorian ice queen Agnes B Marshall brandy and noyaux, an almond-flavoured liqueur made from apricot kernels, and Regula Ysewijn mixes maraschino with dark rum. Madeira, sherry, port, etc, would surely be good, too

The 12 condiments of Christmas

Salt, sweet, bitter, acid, umami. While we don’t think to use too much “sweet” before dessert, it can counterbalance and enhance other flavours. Maple syrup is my sweetener of choice during the holidays because it just tastes cozy. Add it to roasted root vegetables or a poultry glaze, and it’s especially tasty in drinks, from hot apple cider to eggnog and even mulled wine.I’ve never met anyone who didn’t like butter, or ooh and ah at a homemade one

‘Every chef should train here’: Turkish restaurant ranks fourth on list of London’s top food spots

On a list of London’s best restaurants, you would expect to see the usual Michelin-starred suspects such as The Ledbury, Ikoyi and The Ritz. But high among these culinary heavyweights sits a humble salonu tucked away in the depths of north London.Neco Tantuni, a small Turkish eatery specialising in the foodie delights of Mersin, a city located on the southern coast of Turkey, has been crowned the fourth best restaurant in London by Vittles, the trendy food magazine that has become a bible for those looking for the best (and more off-the-radar) grub in the capital.“I’m totally shocked,” says Eren Kaya, whose parents hard graft has resulted in their restaurant, situated in a far-flung corner of Enfield, being placed near the top of the 99-strong list.The small shop, which was a greasy spoon cafe before being transformed into the hugely popular food hotspot, hasn’t fully shed the character of its former self

Ho, ho, Hamburg: bringing the flavours of a true German Christmas market home

From glühwein to lebkuchen, bratwurst to stollen, recreating the delicacies I sampled in the city’s festive markets is wholly achievable. Plus, a new digital cookbook for a good cause Sign up here for our weekly food newsletter, FeastWithout wanting to sound tediously Scrooge-like, the German-style markets that have become seasonal fixtures in many British cities over the last few decades never make me feel particularly festive. What’s remotely Christmassy – or German – about Dubai-chocolate churros and Korean fried chicken, I grumble as I drag the dog (who enjoys all such things) around their perimeters.Hamburg’s markets, however, which I was myself dragged around last weekend, are a very different story. For a start, the city has many of them, mainly fairly small – and some, such as the “erotic Christmas market” in St Pauli, with a particular theme

Christmas gift ideas for drinks lovers, from champagne to canned cocktails

Don’t get pulled in by silly gadgets: buy presents you’d be happy to receive yourselfThe Guardian’s journalism is independent. We will earn a commission if you buy something through an affiliate link. Learn more.Alcohol is an unavoidable part of a festive spread (for more advice on which wines, beers and other drinks I like for each and every occasion, take a look at last week’s Christmas drinks guide), but, sometimes, a drink deserves a place under the tree as well as around it – especially if it’s an easy win for a drinks devotee for whom you need to buy a prezzie.The Guardian’s journalism is independent

Nine bring-a-plate ideas for Christmas drinks, barbecues and dinner parties this summer – recipes

Like nibblies, the concept of bringing a plate to a social event or a host’s home can be deeply confusing across cultures and generations. Are you carting canapes? Are you slinging salad? Are you delivering dessert? If we’ve learned anything from the tragedy of Romeo and Juliet, it’s that communication is key. So if you’re unsure about what your host expects, just ask.Below are nine summer-friendly recipes to suit various bring-a-plate scenarios: one-bite snacks that go with cocktails, salads to bring to barbecues and make-ahead dessert for dinner parties, arranged in each category from easiest to most ambitious.And if time is seriously short, you could throw together a pleasingly arranged antipasto-ish plate comprised of Guardian Australia’s top supermarket taste test products: crackers, feta, salami and pickles

Toffee Crisp and Blue Riband no longer called ‘chocolate’ after recipe change

Toffee Crisp and Blue Riband bars can no longer be called chocolate after Nestlé reformulated their recipes due to the increasing cost of ingredients.The Swiss conglomerate now describes the treats as being “encased in a smooth milk chocolate flavour coating”, rather than being covered in milk chocolate.In the UK, a product needs to have at least 20% cocoa solids and 20% milk solids in order to be described as milk chocolate, a level each product fell below after a higher amount of cheaper vegetable fat was used.Nestlé said the changes were necessary due to higher input costs but were “carefully developed and sensory tested”, adding there were no plans to alter the recipes of other chocolate products.A spokesperson for Nestlé said it had seen “significant increases in the cost of cocoa over the past years, making it much more expensive to manufacture our products