Interest rates held at 3.75% but Bank warns Iran war could mean future hike

The Bank of England has held interest rates at 3.75%, but policymakers warned that pressure to raise rates is building as the Iran war goes on.

The Bank’s monetary policy committee (MPC) said global energy prices were volatile and likely to push inflation higher by the end of the year than it was previously expecting.

The decision to hold interest rates at 3.75% marks the sixth time in a row that the MPC has not changed borrowing costs.

Drax improves profit guidance after heatwave boosts demand

Power generation firm Drax has lifted its profit outlook for the year after demand was boosted by the summer heatwave.

Shares in the company ticked higher on Thursday morning as a result.

Drax group chief executive Will Gardiner said strong recent trading continued into the second half of 2026 as its facilities ‘helped meet power demand through the summer heatwave, turning up and turning down as required to help balance the system’.

Volkswagen’s ID.3 GTI arrives on 50th anniversary of iconic hot-hatch

Volkswagen has produced its most powerful GTI to date with a new model based on the electric iD.3.

Fully named ID.3 GTI, it brings a rear-wheel-drive layout for the first time with a single motor producing 322bhp and 545Nm of torque. In all, it enables a 0-60mph time of 5.3 seconds, making it quicker than the current petrol-powered Golf GTI.

Volkswagen claims that despite the performance, the ID.3 GTI will still return a range of up to 373 miles, while a 10 to 80 per cent charge can be completed in just under half an hour.

Thursday on Car Dealer

Profit Clinic Week: Stop treating warranty as a cost

As part of Profit Clinic Week – running from September 14 to 18 – we hear from Warranty Solutions Group who say dealers need to stop thinking of warranties as another expense, and instead think of them as a very useful profit opportunity.

Winning a Used Car Award can help dealers sell more cars – put yourself forward NOW!

Car Planet says winning a Used Car Award has boosted its credibility with customers and become part of its sales process. The firm is urging dealers to enter before nominations close on September 28.

Cazoo tackles buyer-dealer friction after Car Dealer survey reveals changing behaviour

Cazoo is targeting the trust gap between car buyers and dealers through its ‘Honestly, Finally’ campaign, following Car Dealer’s survey highlighting worsening customer behaviour and changing buying habits.

Nissan Qashqai and Mazda CX-5 emerge as used car margin stars for dealers

The Nissan Qashqai and Mazda CX-5 joined Land Rover models among August’s strongest used-car margin performers, while Dealer Auction reported rising bids, sales volumes and average sold prices.

New national karting championship launches to raise money for automotive charity Ben

A new national karting championship will raise money for automotive charity Ben, with four-person teams competing in endurance races across the UK before a Grand Final in Reading.

The markets

Stocks in London rose sharply on Thursday, boosted by falling bond yields and a lower oil price, as investors weighed a “hawkish” hold by the Bank of England.

In London, the FTSE 100 index ended up 127.67 points, 1.2%, at 10,816.14.

In European equities on Thursday, the Cac 40 in Paris rose 0.6%, while the Dax 40 in Frankfurt added 0.8%.

Tories vow to replace tax rules which have ‘badly let down’ the self-employed

The Conservatives will replace a set of tax rules for self-employed people which have ‘badly’ let them down, shadow chancellor Andrew Griffith has announced.

Mr Griffith made the announcement in his first speech since he was appointed as John Healey’s opposite number in the Conservative reshuffle at the end of August.

Rules designed to prevent tax avoidance by ‘disguising’ workers as self-employed contractors, known as IR35, will be replaced by the Conservatives if they return to government, the shadow chancellor said.

King warns of ‘existential dangers’ of AI falling into wrong hands