Bank welcomes move, as base rates fall to 4.25%

THE Bank of England has cut interest rates to 4.25% after a slowdown in inflation, as the central bank's chief welcomed an expected UK-US trade deal.

- 

Interest rates were cut from 4.5% to their lowest level since May 2023, in their fourth reduction over the past year.

The Bank said it reduced the rate - which helps to dictate mortgage rates - after a recent easing of inflation, while it also reduced its inflation forecast for the rest of 2025.