Bank’s base rate gift to borrowers is wrapped in an inflation warning | Phillip Inman

<p>In their economic outlook the rate setters see a threat from rising prices of food, energy and business services </p><ul><li><p><a href="https://www.theguardian.com/business/2025/aug/07/bank-of-england-cuts-interest-rates-quarter-point-4">Bank of England cuts base rate to 4%</a></p></li><li><p><a href="https://www.theguardian.com/business/2025/aug/07/uk-interest-rate-cut-bank-of-england-mortgages-savings">What the rate cut means for borrowers and savers</a></p><p></p></li></ul><p>A reduction in interest rates by the Bank of England should rank as a joyful summer gift to borrowers weighed down by the high cost mortgages and loans.</p><p>Yet the latest quarter-point cut to the cost of borrowing, <a href="https://www.theguardian.com/business/2025/aug/07/bank-of-england-cuts-interest-rates-quarter-point-4">from 4.25% to 4%</a>, is laced with so many warnings, any celebration will be muted.</p> <a href="https://www.theguardian.com/business/2025/aug/07/bank-base-rate-gift-borrowers-inflation-warning">Continue reading...</a>