"It's time to get interest rates back toward normal", Taylor says.

UK GDP has increased for the first time in three months.

30-year gilts yields are at their highest level since 1998.

The move was widely expected following this week's higher-than-expected wage growth data and inflation figures.

Inflation has increased for the second month in a row.

Rent and mortgage spending grew 8.2% year-on-year in November, as more homeowners rolled off fixed rate mortgages onto higher interest rates.

Mortgage approvals are now at their highest level since the mini-budget in 2022.

Headline inflation reaccelerated in October to the highest rate since April 2024. 

Monthly GDP fell by 0.1% in September, with quarterly growth slowing to 0.1%.

The lender has passed on the full Bank Base Rate reduction plus an additional 0.50% cut.