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

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

AI boom has caused same CO2 emissions in 2025 as New York City, report claims

The AI boom has caused as much carbon dioxide to be released into the atmosphere in 2025 as emitted by the whole of New York City, it has been claimed.The global environmental impact of the rapidly spreading technology has been estimated in research published on Wednesday, which also found that AI-related water use now exceeds the entirety of global bottled-water demand.The figures have been compiled by the Dutch academic Alex de Vries-Gao, the founder of Digiconomist, a company that researches the unintended consequences of digital trends. He claimed they were the first attempt to measure the specific effect of artificial intelligence rather than datacentres in general as the use of chatbots such as OpenAI’s ChatGPT and Google’s Gemini soared in 2025.The figures show the estimated greenhouse gas emissions from AI use are also now equivalent to more than 8% of global aviation emissions

Third of UK citizens have used AI for emotional support, research reveals

A third of UK citizens have used artificial intelligence for emotional support, companionship or social interaction, according to the government’s AI security body.The AI Security Institute (AISI) said nearly one in 10 people used systems like chatbots for emotional purposes on a weekly basis, and 4% daily.AISI called for further research, citing the death this year of the US teenager Adam Raine, who killed himself after discussing suicide with ChatGPT.“People are increasingly turning to AI systems for emotional support or social interaction,” AISI said in its first Frontier AI Trends report. “While many users report positive experiences, recent high-profile cases of harm underline the need for research into this area, including the conditions under which harm could occur, and the safeguards that could enable beneficial use

Blowers: 300-1 shot becomes joint longest-priced winner in racing history

Blowers, a horse named after the renowned former cricket commentator Henry Blofeld, earned an entry in the racing history books at Exeter on Thursday as he became the longest-priced winner ever on a British track at odds of 300-1.Blowers finished three-quarters of a length in front of the 5-4 favourite, On The Bayou, in the card’s opening race, with James Bowen, his jockey, as surprised as anyone by the win as he had been drafted in as a late replacement for Ella Herbison, who was caught in traffic and missed her flight from Ireland.Nigel Hawke’s five-year-old had been pulled up at 200-1 on his most recent start at Chepstow, but he enjoyed the testing conditions at the West Country track after significant rain before racing and made all the running on the way to his shock success.The winner replaces Equinoctial, a 250-1 winner at Kelso in 1990, as the longest-priced winner in British racing history, and shares the record for the most unlikely victory in Britain or Ireland with Sawbuck and He Knows No Fear, winners at 300-1 at Punchestown and Leopardstown respectively in 2022 and 2020.The bookmakers Coral reported taking 82 bets on Blowers, with the biggest being £2 each-way, while Paddy Power reported just two winning bets, of £15 each-way and £10 each-way

Gerald Donaldson obituary

When Ayrton Senna decided to tell a journalist what he felt while driving a racing car, and what it meant, it was Gerald Donaldson who provided his audience of one. Senna chose wisely. The Canadian writer and broadcaster, who has died aged 87, was a sympathetic listener who could be relied on to ask the sort of questions that encouraged interesting answers.During Donaldson’s career as an observer of Formula One racing, reporting for daily newspapers and national TV and radio stations, Senna had provided him with his outstanding memory. It was that of the 1993 European Grand Prix at Donington Park, Derby, where the Brazilian, on a wet and treacherous track, overtook five rivals on the opening lap to seize a lead he would never relinquish