Bank of England cuts interest rates to 4.5% and halves UK growth forecast

Latest quarter-point reduction comes with warning households face inflation of 3.7% by autumn

• Unambiguously bleak forecasts pave way for spending cuts
• What does the rate cut mean for mortgages and savings?
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The Bank of England has cut interest rates to 4.5%, as it halved its UK growth forecasts for this year and warned households would face renewed pressure from rising prices.

With the government under fire over the sluggish economy, the Bank's monetary policy committee (MPC) voted by a majority of seven to two to reduce interest rates, down from 4.75%, to provide some financial relief to borrowers.