Rolling coverage of the latest economic and financial news

• Rachel Reeves says she has ‘iron grip’ on finances as borrowing costs surge

The drop in the pound may make it trickier for the Bank of England to lower interest rates as soon as hoped in 2025.

Two two quarter-point cuts to Bank Rate are priced in for this year, bringing rates down from 4.75% to 4.25% by December, but the odds on a cut as soon as February have dipped slightly this week.

“With sterling weakening, that meant growing questions were asked about whether the Bank of England could cut rates as fast as expected.

“Indeed, investors dialled back their expectations for rate cuts this year by four and a half basis points compared to the previous day, so they now only see 48.5 basis points by the December meeting.

Whilst lower consumer confidence continues to impact High Street footfall and expenditure, our value-for-money offer and the quality of our freshly-prepared food and drink position us well to meet the headwinds we expect to see in the year ahead, and we remain confident in the significant long-term opportunity for growth.”