Base rate cut and growth forecast downgraded

At midday, the Bank of England cut interest rates from 4.75% to 4.5% - but that's not all we learned today:

• The Bank's base rate is now at its lowest since June 2023 - and two of the nine committee members voted for a bigger cut
• The Bank also cut its growth forecast for the UK economy from 1.5% to 0.75% for this year
• Inflation is forecast to rise, peaking at 3.7% later this year, which the Bank says is due to increases in the cost of energy, water and bus fares
• The forecasts say inflation will reach the Bank's 2% target towards the end of 2027 - about six months later than previously thought
• On the reduced growth forecast, PM Keir Starmer says: "We were never going to turn this around in six or seven months - that just spurs us on"
• The Conservatives say the "disastrous Budget is likely to mean fewer rate cuts this year than previously anticipated"
• Base rate cut and growth forecast downgraded