UK interest rates cut to lowest for more than two years

EPA

The Bank of England has cut interest rates to 4%, taking the cost of borrowing to the lowest level for more than two years.

The cut, from 4.25%, is the fifth the Bank has announced since August last year.

It means that some homeowners with mortgages could see repayments fall by up to £40 a month, but returns for savers are likely to decline.

While the fall in interest rates was widely expected, the pace of price rises remains above the Bank of England's target.