The Bank of England’s decision to raise interest rates is the lead story on the front page of the Financial Times. In its Thursday update, the Bank said inflation is now not forecast to fall below the target of 2% until 2025 – but it reaffirmed its prediction that the UK will avoid a recession. The US accusing South Africa of covertly backing Russia’s war effort in Ukraine also features prominently.
The i also leads with Thursday’s economics news, but instead goes in on the political implications. Chancellor of the Exchequer Jeremy Hunt has admitted that the government’s pledge to halve inflation by the end of the year is “not automatic”. It also says there is pressure on him and Rishi Sunak to cut taxes in order to alleviate cost of living pressures on families.
Interest pain isn’t over yet, the Mirror reports. Higher rates are yet to fully filter through to households and the economy, the Bank warned on Thursday, estimating that just a third of the impact has passed through so far. It means homeowners on fixed-rate deals will feel the impact when it is time for them to renew rather than now.
The Times also leads on inflation, but focuses on the role food prices are playing. The government has stopped short of accusing supermarkets of price gouging, but the Treasury held a call with the bosses of major food retailers yesterday urging them to do more to help people with basic living costs. It points to data showing the price of a pint of milk has risen 40% to 70p in the last year.
“Wrong! Wrong! Wrong!” is the headline in the Daily Express. It says some economists have “attacked” the Bank’s for its “inaccurate” predictions of how the economy would perform. The paper says the “blistering criticism” comes after another day of bad cost of living news for the country.
A government minister tells the Telegraph he wants to see people who left the jobs market during the pandemic return to work. Mel Stride says there are 400,000 fewer workers now than there was before Covid. The work and pensions secretary says the government will have more freedom to cut taxes if the labour force swells.
For a second day in a row, the Sun leads with reported tensions between daytime television presenters Phillip Schofield and Holly Willoughby. According to the paper, relations between the This Morning hosts have suffered in recent months. Mr Schofield has released a statement to the Sun, admitting that the “last few weeks haven’t been easy for either of us”.
Investigators think they have found DNA proof that big cats roam the British countryside, the Metro reports. The findings come from a new documentary called Panthera Britannia Declassified. Beyonce, whose Renaissance world tour has begun, is the main image on the front.
The Daily Star also leads on purported new evidence of black panthers in Britain, under the headline “Gotcha!”. Even more tantalisingly, a trail in the top right hand corner of the front page promises “Free witch’s spells inside”.
