6:50 am, November 7, 2025
Interest rates held at 4% but ‘door open’ for a post-Budget cut
Interest rates have been kept at 4% following a narrow vote that experts say opens the door to borrowing costs being cut in December.
The central bank’s Monetary Policy Committee (MPC) opted to keep the rates the same at the final meeting before the autumn Budget.
Members of the nine-strong committee voted five to four in favour of maintaining the rate, which is used to dictate mortgage rates and other borrowing costs. But the closeness of the vote, as well as speculation that possible tax rises in the upcoming Budget could push down on inflation, have increased the likelihood of rates being cut before the end of the year, according to experts.
Sainsbury’s boss warns Budget tax hikes could send food prices higher
The boss of Sainsbury’s has said customers are delaying spending ahead of this month’s Budget and cautioned against hitting retailers with further tax hikes that could send food prices even higher.
Chief executive Simon Roberts said shoppers are being ‘cautious’ amid uncertainty of what may come in the November 26 Budget, with Chancellor Rachel Reeves’s speech on Tuesday widely being seen to have set the stage for tax hikes.
He said: ‘There will be some delayed spending until all of the news of the next few weeks comes through.’
Mercedes CLA hybrid goes on sale in the UK
Mercedes has added to its CLA range with a new hybrid model, which has now gone on sale in the UK.
Priced from £38,700, the CLA hybrid provides an alternative to the electric model and uses a 1.5-litre four-cylinder petrol engine which is linked to an electric motor and compact 1.3kWh battery.
Specifications range from entry-level Sport with its fixed panoramic sunroof and adaptive cruise control, through to AMG Line Executive with its AMG bodystyle package and sports seats, before finishing with AMG Line Premium Plus, which gains a heated steering wheel and Burmester sound system, among other features.
The markets
The FTSE 100 fell on Thursday as the Bank of England left interest rates unchanged in a tight vote and investors weighed a deluge of earnings from leading blue-chip names.
The FTSE 100 Index closed down 41.30 points, 0.4%, at 9,735.78. The FTSE 250 ended 189.35 points lower, 0.9%, at 21,905.03, and the AIM All-Share fell 3.09 points, 0.4%, at 753.13.
Sterling was quoted at 1.3106 dollars at the time of the London equities close on Thursday, higher compared with 1.3037 dollars on Wednesday. The euro stood at 1.1536 dollars, up against 1.1476 dollars.
Manhunt ongoing for mistakenly released prisoner Brahim Kaddour-Cherif
A manhunt for Brahim Kaddour-Cherif is ongoing after Sir Keir Starmer defended his deputy David Lammy against criticism over his handling of the mistaken prisoner release.
Police are trying to track down Algerian national Kaddour-Cherif, 24, who was accidentally freed from HMP Wandsworth last Wednesday, October 29.
Another prisoner, Billy Smith, 35, who was also accidentally freed from the same prison on Monday, has handed himself back in.
Thursday on Car Dealer
Auto Trader reports soaring profits and revenues in strong start to financial year
Auto Trader bosses have paid tribute to the firm’s staff after announcing a rise in both profit and turnover for the first half of the year.
‘Poll tax on wheels’: Experts warn about impact of proposed per mile charges on EVs
Bentley scales back electrification plans amid increased demand for plug-in hybrid models
Arnold Clark grows Volvo partnership with new showroom in Glasgow
Dealer group Arnold Clark has added to its retail network with the opening of a new Volvo dealership in Glasgow.
Former Volvo and Harwoods boss Jon Wakefield named MD of AION Auto UK
Former Harwoods Group CEO and Volvo UK boss Jon Wakefield has been appointed as managing director of AION Auto UK.
Weather
A mix of cloud, sunshine and scattered showers today, with heavier rain developing in eastern England and later in the south and Northern Ireland, reports BBC Weather.
Tonight, rain will spread into south-west Scotland before clearing. Elsewhere, partly cloudy with isolated showers, becoming overcast again later. Breezy in southern areas.
