UK interest rates fall to 4.25% as Bank of England announces a quarter-point cut

Bank of England policymakers have cut interest rates by a quarter point to 4.25% to cushion the UK economy against the impact of rising economic uncertainty.The widely expected move from the Bank’s monetary policy committee (MPC), its fourth cut since last August, also carried a warning that the UK economy would slow by a further 0.3% over the next three years in addition to dramatic cuts to its forecasts made earlier this year.In a blow to the chancellor, Rachel Reeves, the MPC said a combination of uncertainty surrounding the impact of US trade policy on the global economy and clouds hanging over the outlook for the UK meant growth would be almost stagnant for the rest of the year

British Gas owner suffers shareholder rebellion over CEO pay packet

The owner of British Gas has suffered a shareholder rebellion after handing its chief executive a multimillion pound pay packet while energy bill payers struggle with record levels of debt.Nearly 40% of Centrica’s shareholders voted against the board’s pay plans at the energy company’s annual investor meeting in Manchester on Thursday, after rising criticism of boss Chris O’Shea’s pay during the energy crisis.O’Shea’s basic salary rose 29% last year to £1.1m to take his total pay packet, including bonuses and share-related pay, to £4.3m for the year

Bank of England cuts interest rates to 4.25% and welcomes US-UK trade deal – as it happened

Bank of England governor Andrew Bailey has hailed the news that Britain and the United States are expected to announce a trade agreement in a couple of hours.He tells journalists at today’s press conference that the Bank has been following the issue very closely.Bailey says he hasn’t been briefed about the situation, and doesn’t know the content of the deal.But he says:We do now have news that suggests there will be an announcement, and we welcome that news.I very much welcome it, and I think it’s very well done to those involved

Mood-boosting rate cut is a fillip for Reeves but leaves future uncertain

Thursday’s interest rate cut to 4.25% is the fourth in a run of reductions that kicked off last August. It represents a fillip for Rachel Reeves, who will hope it helps revive the feelgood factor for gloomy British consumers.The Bank of England’s nine-member monetary policy committee (MPC) has passed judgment on the impact of Donald Trump’s trade war for the UK – and expects modestly weaker growth and inflation to be the result.Lower global energy prices as markets anticipate weaker demand, and cheaper Chinese imports, are likely to bear down on costs, the MPC has judged

BlackRock to order senior managers back to office five days a week – reports

BlackRock, the world’s biggest asset management company, is reportedly preparing to order its senior managers to work from the office five days a week.The New-York based company is expected to tell its staff as early as Thursday that about 1,000 managing directors around the world should work in the office full-time, the Financial Times has reported.BlackRock last told staff in 2023 they had to go into the office at least four days a week. More junior staff will still be allowed to work from home one day a week under the new guidance, according to the report.BlackRock, which has more than 21,000 staff around the world, is one of many big American corporations calling time on an era of remote and hybrid working triggered by the Covid-19 pandemic

EU targets US aircraft and car exports in new list of potential tariffs

The EU is considering imposing tariffs on US aircraft and car exports in a fresh attempt to persuade Donald Trump to drop his current and proposed tariffs against the EU.If acted on they will hit Boeing hard but also include further categories of US exports including chemicals, electrical equipment including cameras, health-related products and some foods such as sweet potato and nuts.At the same time Brussels has launched a consultation with member states on potential litigation against the US over the blanket 20% reciprocal tariffs the US president announced last month.As the EU prepared for the possibility of a prolonged transatlantic trade war, Trump reached an agreement with the UK and appeared to softened his position on China.The US treasury secretary, Scott Bessent, and Washington’s chief trade negotiator, Jamieson Greer, are due to meet China’s vice-premier, He Lifeng, in Switzerland on Saturday for talks that could be the first step toward resolving the trade war between the two countries