Interest rates LIVE: Bank of England slashes base rate to 4.75% in good news for mortgages

The has decided to reduce the Base Rate for the second time this year, with a majority vote of 8-1.

With inflation resting below the Bank's Government-set target at 1.7% in the 12 months to September, the Monetary Policy Committee (MPC) has voted to cut the rate to 4.75%, down from 5%.

Bank of England governor Andrew Bailey said: "We need to make sure inflation stays close to target, so we can't cut interest rates too quickly or by too much.

"But if the economy evolves as we expect it's likely that interest rates will continue to fall gradually from here."

Mr Bailey, alongside policymakers Sarah Breeden, Swati Dhingra, Clare Lombardelli, Dave Ramsden, Megan Greene, Jonathan Haskel and Huw Pill voted to cut, while Catherine Mann voted to maintain the base rate at 5%.

The move will bring much-welcome relief to homeowners grappling with soaring mortgage rates, with projections that the thousands on tracker mortgages could see bills drop by hundreds of pounds a year.

The news won't be quite so positive for savers, who have been benefiting from historically high returns on their cash.

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