Bank of England cuts interest rates the lowest level in two years

The Bank of England has cut interest rates to 4%, taking the cost of borrowing to the lowest level for more than two years.

The cut, from 4.25%, is the fifth the Bank has announced since last August.

While the fall in interest rates was widely-expected, the pace of price rises remains above the Bank of England's 2% target.

This should mean lower mortgages, but also lower returns on savings. Those on tracker mortgages, which are loans that track the Bank’s base rate, will see an immediate reduction on monthly repayments.

Bank of England cuts interest rates to 4% - live updates - BBC News