Interest rates have slowed down price rises (inflation) over the past two and a half years, so we are able to cut interest rates again today, to 4%. Inflation has fallen back significantly since its peak of over 11% in 2022. Inflation has increased again recently, but by a much smaller amount. It is likely to rise to around 4% in the next few months, partly because of higher food prices. We expect it to start falling back towards our 2% target after that. There has been uncertainty from global developments, including because of changes in global trade policies. While recent trade agreements mean there is less ... (full story)