Bank of England interest rate cut joy for mortgage holders as Reeves blames mini-Budget for inflation - live

The Bank of England has cut interest rates for the first time since 2020 as inflation continues to remain steady, holding at their two percent target for two consecutive months.

Bank Rate is currently 5.25per cent, a 16-year high where it has been pegged for the last year to fight inflation, but it has now been set at five percent, a drop of 0.25 percentage points.

Governor Andrew Bailey said the move comes after inflation pressures “eased enough that we’ve been able to cut interest rates today”.

The decision will come as joy for homeowners who have been struggling with rising mortgage payments as major banks have confirmed rates could go down as low as three per cent.

Chancellor Rachel Reeves has welcomed the move but warned “millions of families are still facing higher mortgage rates after the mini- budget ”.