UK Interest Rates Held Steady Amidst Economic Uncertainty, While Other News Unfolds
London – The Bank of England voted to hold UK interest rates at 3.75% on Thursday, according to BBC Business. The decision, reached by a narrow margin of five to four, came against a backdrop of mixed economic signals. Economists had not anticipated a rate cut following a reduction in December.
Bank of England Governor Andrew Bailey indicated to the BBC that "some further reduction" in rates was likely later in the year. However, the Bank also lowered its economic growth forecast for the year and raised its unemployment expectations, factors that could influence future rate cuts. Bailey clarified that rates were not expected to return to the pandemic-era lows, which he described as "the product of exceptiona" circumstances.
In other news, concerns are mounting regarding potential delays at European airports due to the rollout of a new biometric border control system. BBC Business reported warnings of queues lasting five to six hours during peak summer travel periods. A group representing airports raised the alarm, citing reports of hours-long waits already experienced by passengers at some destinations. The European Commission stated it might suspend the new system during peak times until September to mitigate the disruptions. The implementation follows a cyber attack in September that caused IT outages at several major European airports, leading to significant disruption.
Meanwhile, UN High Commissioner for Human Rights Volker Turk warned that his office is in "survival mode" due to a funding crisis. Al Jazeera reported that Turk appealed for $400 million to cover the agency's funding needs for the year. He stated that budget cuts in the previous year had already forced the reduction of operations in 17 countries, including Colombia, Myanmar, and Chad. Turk cautioned that "these cuts and reductions untie perpetrators hands everywhere."
In the UK, Prime Minister Keir Starmer expressed regret over appointing Peter Mandelson as ambassador to the US, following revelations about Mandelson's ties to Jeffrey Epstein. Al Jazeera reported that documents showed Mandelson maintained a close relationship with Epstein, shared sensitive information, and received payments linked to Epstein. The matter is currently under police investigation.
Separately, in London, police are investigating a robbery at a family-run jewellers in Richmond. Sky News reported that two balaclava-wearing robbers used a sledgehammer to smash the front window of Gregory & Co at around 10:30 am on Thursday. The suspects stole jewellery from the display window before fleeing on foot. A vehicle believed to have been used in the robbery has been recovered and is being examined. Police are appealing for witnesses. Gregory & Co described the incident as "deeply upsetting."
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