"UK Inflation Surges to 4%, Putting Pressure on Interest Rates"

Despite a surprise uptick in the UK's inflation rate to 4% in December, expectations for interest rate cuts later this year remain due to predictions of energy bill reductions in 2024. The Bank of England's current rate stands at 5.25%, a 15-year high, leading to higher mortgage rates but also increased returns on savings. Economists anticipate a potential rate cut in May or June as inflation is expected to fall below the Bank's 2% target, although uncertainties remain due to geopolitical tensions impacting supply chains and consumer prices.