Bank’s base rate gift to borrowers is wrapped in an inflation warning | Phillip Inman

In their economic outlook the rate setters see a threat from rising prices of food, energy and business services

• Bank of England cuts base rate to 4%

• What the rate cut means for borrowers and savers

A reduction in interest rates by the Bank of England should rank as a joyful summer gift to borrowers weighed down by the high cost mortgages and loans.

Yet the latest quarter-point cut to the cost of borrowing, from 4.25% to 4%, is laced with so many warnings, any celebration will be muted.