Bank of England keeps interest rates at 4.5%

The Bank of England has decided to keep interest rates at 4.5 percent. This decision comes as global uncertainty rises, partly due to potential tariffs announced by Donald Trump. The Bank plans to lower rates later this year, but only two cuts are expected throughout 2025. Inflation remains a significant issue in the UK. Businesses are facing increasing costs, adding to the economic challenges. Reports suggest that Rachel Reeves, the Chancellor, will announce significant spending cuts in her upcoming statement. Some departments may see reductions of up to seven percent over the next four years. These cuts come as the government looks to reduce budgets by billions. Reeves is expected to outline her plans next Wednesday. Experts warn that these cuts could harm essential public services, especially after recent reductions in the welfare budget. In other news, Conservative leader Kemi Badenoch has expressed concerns about the upcoming local elections. She stated that the elections could be “extremely difficult” for her party. Badenoch believes the Conservatives may lose every council seat they won in 2021 if recent general election trends continue.