Bank of England cuts interest rates as it warns food costs could push inflation to 4%

Bank’s policymakers cut base rate by quarter point to 4% amid concern about strength of UK economy

• What the rate cut means for mortgages and savings?

The Bank of England has warned that soaring food prices could drive inflation to 4% as it voted for a fifth cut in interest rates in a year, amid mounting concerns over the strength of the UK economy.

In one of its closest decisions since its independence more than 25 years ago, the Bank’s monetary policy committee (MPC) voted by 5-4 to cut its key base rate by a quarter-point to 4%.