Cut in rate 'shows economy on right track' under Tories

THE Bank of England has cut interest rates for the first time since 2020, undermining Rachel Reeves' claim the economy is in its worst state since the Second World War.

- Christian Calgie

The Monetary Policy Committee voted five-four to lower rates from 5.25% to 5%, with Governor Andrew Bailey saying inflationary pressures "have eased enough".

Shadow Chancellor Jeremy Hunt said the decision "will be welcome news for millions of homeowners" and "shows that Labour inherited a stronger economy which was on the right track".

He said: "In government, we took difficult decisions that cut inflation from 11.1% to the Bank's target 2%, paving the way for lower rates.