The Bank of England cut interest rates to 4.5% as its governor, Andrew Bailey, warned of more inflation to come, with a bleak forecast for growth in the UK. Bailey signalled Threadneedle Street stood ready to cut borrowing costs further this year despite the short-term rise in inflation. 'We live in an uncertain world and the road ahead will have bumps on it,' said Bailey at a press conference in London

• Bank of England cuts interest rates to 4.5% and halves UK growth forecast