Consumer prices rose 3.5% in April compared with a year earlier as businesses raised their prices in response to higher payroll taxes and utility charges.

The Bank of England's Prudential Regulation Authority clarified its expectations around business conducted within branches of international banks in Britain, introducing a new threshold around deposits covered by the UK's compensation scheme.

Regulators view large deposits which are not covered by guarantee schemes as more risky sources of funding for banks as they are more likely to be withdrawn at the first sign of a crisis. The BoE added that less than £100mn of SVB’s UK deposits had been covered by the FSCS guarantee schemes.

Any kind of trade deal will help limit the damage to the U.K. from President Trump's tariffs, said Bank of England Gov. Andrew Bailey, who added that he hadn't been briefed on the contents of the coming agreement.

The U.K.'s annual rate of inflation jumped further above the Bank of England's target in April as businesses raised their prices in response to higher payroll taxes and increased utility charges, an expected move that will nonetheless reinforce the central bank's caution.

The Bank of England's base rate influences what banks and lenders charge you to borrow money, but it also dictates how much banks will pay you in interest on your savings

The chief economist of the Bank of England has warned interest rates have been falling too quickly as the rate of inflation continues to exceed the bank's 2% target.