We need ‘right to intervene’ in AI amid growing threat, says Bank of England boss

Andrew Bailey’s comments come as fears grow that rogue models could take financial system hostage

The governor of the Bank of England has said authorities must retain the “right to intervene” in the AI industry amid growing fears that rogue models could take the financial system hostage.

Andrew Bailey said the risks posed by the rapid advancement of frontier AI models – a number of which have gone rogue in recent months – were “real and increasingly significant” and reduced the ability of society to supervise and intervene when things went wrong.

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Khan addresses Polanski in Urdu at London assembly, mocking Green leader’s byelection video – UK politics live

It comes after the Green leader, who is standing as a candidate in the Holborn and St Pancras byelection, recorded a campaign video in Urdu

Andrew Griffith has delivered his speech, and he is now taking questions.

Q: You want the government to pause the making tax digital programme. Is that an admission that the last government got this wrong when it introduced it?

It is an admission that despite [good] intentions, the execution of that has left a lot to be desired.

In fact, coming to parliament from business, I can confess the law that we pass the most often is the law of unintended consequences. And I think making tax digital is a good example of that.

The truth is that Burnham and Miliband ignored the advice they were given – which was that if they were determined to sanction Israel, they should not do so before the Israeli election on 27 October.

It may not be surprising that this was the message from the Israeli foreign minister, Gideon Sa’ar, when Miliband called him on 11 August to warn sanctions were imminent. ‘He said postpone it until after the elections,’ a diplomatic source confirms. It was also the message the Israeli embassy in London – and its new chargé d’affaires Chris Cantor – was relaying to the Foreign Office. ‘Their message was clear: why do it now? Wait until after the elections, because something might change,’ a senior Labour figure says.

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Bank of England urged to slow or halt bond-selling to slash UK borrowing costs

Economists urge John Healey to press Bank to change policy that is costing the exchequer billions of pounds

Economists have urged the chancellor, John Healey, to press the Bank of England to slow down its bond-selling programme that has already cost the exchequer billions of pounds.

The Bank’s monetary policy committee (MPC) meets this week to not only decide the level of interest rates but also whether they should freeze or slow the sale of government bonds, known as gilts, bought as part of the rescue operation after the 2008 banking crash.

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UK inflation falls by more than expected to 2.6% in lift for Andy Burnham

Annual June figure comes after new PM pledges to reduce cost of living and improve economy

UK inflation dropped by more than expected in June to 2.6%, in a boost for Andy Burnham’s plans to reduce the cost of living.

The new prime minister has pledged to bring down the cost of living to give households more disposable income and improve the outlook for the economy, announcing a winter VAT cut on electricity bills and lowering the cap on bus fares in England.

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Bank of England governor would have put off Farage meeting had £5m gift been under investigation

Exclusive: Andrew Bailey says he does not regret meeting Reform UK leader to discuss cryptocurrency regulation

The Bank of England governor has said he would have put off a meeting with Nigel Farage last autumn had the Reform UK leader’s £5m gift from a crypto billionaire been under investigation at the time.

Andrew Bailey said he did not regret meeting Farage to discuss the Bank’s plans for cryptocurrency regulation last September, months before the controversial donation from the Thailand-based investor Christopher Harborne was revealed by the Guardian in April.

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IMF upgrades UK growth forecast as fears over impact of Iran war diminish

July update projects GDP growth of 1% this year, making UK the third fastest-growing economy in the G7

The International Monetary Fund (IMF) has upgraded its growth forecast for the UK, while leaving those for other G7 countries weaker or unchanged, amid hopes the economic impact of the Iran war may be less severe than feared.

In a July update of its World Economic Outlook, which was finalised before the latest outbreak of hostilities in the Middle East, the Washington-based organisation projected UK gross domestic product to grow by 1% this year – up 0.2 percentage points from its April forecast.

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Bank of England plans to ease capital rules despite AI stability fears

Central bank’s financial policy committee members voice concern on trimming big lenders’ financial buffers

The Bank of England is planning to loosen capital requirements for major UK lenders, even as policymakers expressed concern about the threat to financial stability from rapid AI developments and debt-fuelled stock investments.

The central bank said on Tuesday it was looking to remove and loosen some rules introduced after the 2008 financial crisis that determine the size of the financial cushion required to absorb losses and protect consumers and taxpayers when things go wrong.

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Puffins, dolphins and bumblebees in running to feature on new UK banknotes

Bank of England says updated imagery will celebrate native wildlife while bolstering anti-counterfeit features

Puffins, dolphins and bumblebees are among the wildlife that could feature on new banknotes in the UK as the Bank of England announces its shortlist.

There has been controversy over the decision, with figures including Nigel Farage criticising the Bank for, he claimed, wanting to replace Winston Churchill with a beaver. The Conservative leader, Kemi Badenoch, said it was “a silly thing to do”, and Reform UK’s Farage called it “absolutely crackers”. In the end, no beaver appeared on the shortlist. Mammal options include bottlenose dolphins and red foxes.

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Airlines among companies using fuel surcharges to cover surge in costs, UK survey shows

Firms raising prices at fastest rate in three years, driven by soaring energy and wage bills but also extra materials costs

Airlines and other companies are increasingly using fuel surcharges to cover soaring costs, a survey has found, in a further sign of Iran war-linked inflation hitting the economy.

A poll of companies in the services sector, which includes airlines, found rising fuel prices had contributed to businesses raising prices at the fastest pace in more than three years in April.

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UK firms expect to raise prices more quickly as Iran war pushes up costs

Bank of England survey in March shows chief financial officers foresee 3.7% increase over coming year

Companies in the UK expect to raise their prices more rapidly over the coming months as the war in the Middle East drives up costs, Bank of England research shows.

The Bank’s regular survey of more than 2,000 chief financial officers conducted last month, after the Iran conflict began, shows they now expect to raise their prices by 3.7% over the coming year.

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‘Geopolitical uncertainties’ amid Iran war could slow fall in mortgage rates, says Halifax

UK house price growth slowed in February as value of typical home rose 0.3% to £301,151

Halifax has warned that the US-Israel war on Iran could slow mortgage rate decreases this year, as it said that house price growth eased dramatically in February.

Halifax, which is part of Lloyds – Britain’s biggest mortgage lender – said the conflict in the Middle East was likely to affect global economies, stoke inflation and reduce the likely rate of interest rate cuts that influence borrowing costs for homebuyers.

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Signs of peak inflation open door to earlier Bank of England interest rate cuts

Policymakers under pressure for rethink after price growth in UK remained at 3.8% in September

Has UK inflation peaked? The latest official figures showing price growth in the UK stayed at 3.8% in September seem to suggest so.

The statement cannot be made with absolute certainty yet but many economists reacted to the latest consumer prices index (CPI) data with a message that the only direction for inflation over the rest of the year was down.

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UK inflation unexpectedly remains at 3.8% for third month in a row

Annual September rate confounds forecasts of a rise, as pace of food price growth slows for first time since March

UK inflation was unchanged last month at 3.8%, confounding expectations of a rise, in welcome news for the chancellor, Rachel Reeves, as she plans for her crucial budget next month.

The Office for National Statistics (ONS) said that inflation measured on the consumer prices index remained at the same level in September as in August and July.

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George Osborne says UK has been left behind in cryptocurrency boom

Ex-chancellor criticises hesitant approach to crypto and warns country in danger of missing next surge in market

The UK has been left behind in the cryptocurrency boom and is in danger of missing a second wave of demand, according to the former chancellor George Osborne.

Osborne, who has an advisory role at the crypto exchange firm Coinbase, said the country already missed out on the first generation of crypto because the formerly sceptical US had embraced digital currencies under Donald Trump.

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Bank of England governor blocks Rachel Reeves’s Revolut meeting

Concerns about chancellor’s involvement in independent process over fintech’s banking licence

The governor of the Bank of England blocked a meeting that Rachel Reeves tried to secure with watchdogs and Revolut, amid concerns the chancellor was meddling in an independent process over the fintech’s UK banking licence.

Andrew Bailey intervened after learning of the plan to bring together representatives from Revolut, the Treasury and the Bank’s regulatory arm, the Prudential Regulation Authority, to discuss the fintech’s ambitions to become a fully authorised UK bank.

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UK unemployment rises and wage growth slows as jobs market ‘weakens’

ONS data shows jobless rate climbing to highest rate since June 2021 with growth in average earnings slowing to 5%.

Unemployment climbed and wage growth slowed in the three months to May, according to official figures that will pressure the Bank of England to cut interest rates next month.

Data from the Office for National Statistics, released on Thursday, showed that Britain’s official unemployment rate rose to 4.7% in the three months to May, up 0.1% from April to reach the highest level since June 2021.

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UK inflation eases slightly to 3.4% as food price rises offset transport cost falls

Annual rate slows in May from 3.5% in April despite record increase in chocolate prices

Inflation in the UK eased slightly to 3.4% last month as a steep fall in air fares and petrol prices was offset by a jump in the cost of food.

May’s decline in the consumer prices index (CPI), down from the official figure of 3.5% for April, complicates the Bank of England’s interest rates decision on Thursday, although policymakers are still almost certain to hold interest rates at 4.25%.

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Rising goods prices could delay UK interest rate cuts, says Bank policymaker

Bank of England’s Catherine Mann wary of firms looking to rebuild profit margins after a squeeze

Businesses will need to show they are keeping a lid on prices before there can be further interest rate cuts, according to the Bank of England interest rate-setter Catherine Mann.

In a warning to retailers and consumer goods companies to resist pushing up prices by more than the increase in their costs, Mann said she was wary of firms looking to rebuild their profit margins after a squeeze in recent years.

“I need to see the loss of pricing power, I need to see that firms are starting to be much more moderate in setting their prices,” she said.

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UK interest rates fall to 4.25% as Bank of England announces a quarter-point cut

Move follows run of downbeat economic data and looks to cushion UK from Trump’s trade war fallout

Bank of England policymakers have cut interest rates by a quarter point to 4.25% to cushion the UK economy against the impact of Donald Trump’s trade war.

The widely expected move from the Bank’s monetary policy committee (MPC), its fourth cut since last August, should lead to cheaper mortgages for homeowners.

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Trump tariffs likely to drag down weak UK growth, Bank policymaker warns

Sarah Breedon says too early to judge impact on inflation of ‘most significant change in trade policy in a century’

UK economic growth will be hit by US tariffs, which are the biggest trade policy change in a century, a senior Bank of England official has warned.

Sarah Breeden, the Bank’s deputy governor for financial stability, said on Thursday that business activity was likely to be adversely affected by Donald Trump’s tariff regime, dragging down the UK’s already weak growth rate.

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