The central bank said that future cuts would be gradual amid higher inflation forecasts after the new government introduced spending and tax increases in its budget.

BoE says the higher bus fare cap and adding VAT to private school fees will push up UK inflation.   20:04 Q: Did you learn anything about what the Americans think about the economy from the election result?

The Bank of England has cut interest rates for the second time this year, in good news for mortgage-holders and other borrowers. Policymakers at the Bank of England opted to reduce interest rates to 4.