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