Today’s UK interest rate rise unlikely to be the last unless Iran war ends; Wall Street slides on AI fears as ‘panic sets in’ – as it happened

UK hit by first interest rate rise in three years, as Bank predicts inflation will approach 5% by middle of 2027

• Interest rate rise in midst of cost of living crisis will leave many incredulous

UK government bond prices are also rallying today.

This has pushed down the yield, or rate of return, on UK 10-year gilts by 4 basis points (0.04 of a percentage point) to the lowest since August 28, below 5.1%.

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