Interest rates cut to 4% but Rachel Reeves’ hopes of easing cost-of-living crisis hit by inflation jump blow

“Nevertheless, it is a marginal win at a time of significant challenges for the UK economy. Inflationary pressures are still evident in food, energy and labour costs. While inflation is expected to drop later in the year, it hit 3.6% in June, significantly ahead of the Bank’s target of 2%. The rate cut is welcome, but is unlikely to shift the dial on the UK economy.