Rate relief

Bank's 0.25% cut is first in 4yrs... but no big fall on way

- GRAHAM HISCOTT

THE Bank of England cut interest rates to 5% yesterday, bringing some relief to hard-up borrowers.

The 0.25% fall was the first rate cut in four years and will mean an average drop in monthly tracker mortgage payments of £28.

But Bank Governor Andrew Bailey was guarded as it came down from a 16-year high. He said: "Inflationary pressures have eased enough that we've been able to cut interest rates today.

"But we need to make sure inflation stays low, and be careful not to cut interest rates too Eng quickly or by too much."

The Bank predicts inflation, at its 2% target, will temporarily rise to 2.75% later this year.