The Bank of England has maintained its base interest rate at 5%, with Governor Andrew Bailey indicating a gradual reduction in borrowing costs may be on the horizon. Bailey noted that while inflation has decreased significantly, the Bank will require more evidence of sustained low inflation before implementing further rate cuts.

Inflation remained at 2.2% last month, slightly above the Bank’s target. The decision to hold rates was widely anticipated, following a reduction from 5.25% in August—the first cut since the pandemic began in 2020. Bailey expressed optimism about future rate decreases but stressed the importance of caution to avoid cutting rates too quickly or excessively.

“The decision to keep rates steady was guided by the need to address persistent inflationary pressures,” Bailey said. He added that inflation must remain low to justify any further reductions. The base interest rate influences borrowing costs, affecting mortgages, credit cards, and savings returns. While higher rates have led to increased borrowing costs, they have also benefited savers.

The elevated rates have impacted many households, including James and Sofia, who recently moved to a smaller home due to rising rent. Their rent had increased by £100 a month to £1,650, prompting their move to a £1,400 rental property. Sofia, who had to return to work early from maternity leave due to financial strain, reported challenges such as relying on food banks and struggling with fuel costs.

Despite these issues, the Bank of England’s latest assessment suggests some positive economic developments. Mortgage approvals have risen to their highest level since September 2022, and there are reports of improving real incomes. However, the Bank anticipates inflation will climb to around 2.5% towards the end of the year, with the UK economy showing signs of gradual improvement.

Bailey noted that the economic impact of major global events, including the Covid-19 pandemic and the Ukraine war, has lessened. “We’ve managed to navigate past the severe effects of these global shocks,” he said, though he acknowledged that economic recovery has been slow. The Bank expects economic growth between July and September to be 0.3%, down from the 0.4% expansion previously anticipated.

The UK economy has experienced sluggish growth in recent years, prompting the new Labour government to pledge reforms aimed at revitalizing economic performance. The Bank of England’s cautious approach reflects ongoing concerns about inflation and economic stability as it looks to balance rate adjustments with broader economic conditions.

France’s new Prime Minister, Michel Barnier, has indicated he may raise taxes to address the country’s struggling budget, a proposal that could divide his centre-right political base. Barnier, who assumed office just two weeks ago, is exploring tax hikes as a solution to France’s severe budgetary shortfall.

According to reports from French media, Barnier is contemplating tax increases given the “very serious” state of the national budget. The European Union had previously warned France about breaching budgetary rules before Barnier’s appointment. Additionally, the Bank of France has deemed the goal of reducing the public deficit to under 3% by 2027, as stipulated by EU regulations, “not realistic.”

France’s public sector deficit is projected to hit approximately 5.6% of GDP this year and could exceed 6% by 2025. Barnier is set to face his first major challenge next month when he presents the 2025 budget to parliament. Securing support for the budget may prove difficult given the potential backlash from his political allies.

Barnier’s predecessor, Gabriel Attal, who led President Emmanuel Macron’s Ensemble pour la République group, has called for a reassessment of their political strategy in light of Barnier’s tax plans. A scheduled meeting between Barnier and Macron’s supporters has been delayed, adding to the uncertainty surrounding the new administration’s stance.

Within the right-wing Les Républicains party, concerns have been voiced about Barnier’s potential tax increases. Véronique Louwagie, a party MP, criticized the idea, stating, “We currently have the highest level of taxes and contributions in Europe. Let me remind you that these contributions are levied on households and businesses.”

Although no specific tax hikes have been confirmed, speculation suggests that Barnier may target the 25% corporate tax rate and consider reinstating a wealth tax. The latter could be a strategic move to gain support from left-leaning members of the National Assembly, who might be crucial for passing the budget and securing coalition backing following France’s contentious parliamentary elections in July.

Conversely, increasing taxes could alienate the far-right National Rally, who hold the power to initiate a vote of no-confidence against Barnier. Such a vote could gain support from left-wing MPs, further complicating Barnier’s political landscape.

As Barnier navigates these challenges, his approach to the budget and tax policy will be closely scrutinized, with potential implications for France’s political stability and economic recovery.

A new generation of SpaceX’s Starlink satellites is reportedly disrupting radio astronomy, hindering scientists’ ability to observe the universe, according to researchers at the Netherlands Institute for Radio Astronomy (ASTRON). The interference from these satellites is proving to be a significant obstacle for astronomers, who are raising concerns about the impact on their research.

The issue stems from the second generation of Starlink satellites, which are emitting radio waves that are overpowering and obscuring the signals from distant celestial objects. According to ASTRON, the interference from these newer satellites is 32 times stronger than that from the first-generation models. This radiation exceeds the limits set by the International Telecommunications Union, the industry body responsible for regulating satellite emissions.

Professor Jessica Dempsey, director of ASTRON, highlighted the severity of the issue. “Every time more of these satellites are launched, we see less and less of the sky,” she told BBC News. Dempsey explained that the interference affects critical areas of research, including the study of black hole jets, early galaxies, and exoplanets. The increased brightness of the Starlink satellites is akin to comparing the faintest visible stars to the brightness of the full Moon, according to Cees Bassa, lead author of the study.

The study, conducted using the LOFAR radio telescope, found that almost all observed V2 Starlink satellites emitted unintended electromagnetic radiation, which was about 10 million times brighter than the weakest known sources of light. This level of interference is alarming as it threatens the integrity of ground-based astronomical observations across various wavelengths.

SpaceX, which operates Starlink, has not yet responded to requests for comment from BBC News. However, the company has previously engaged with astronomers about the interference from its first-generation satellites, though the newer models appear to be even more problematic.

The research published in the journal Astronomy and Astrophysics underscores the urgent need for regulatory measures to mitigate the impact of satellite constellations on scientific research. With predictions that the number of satellites in orbit could exceed 100,000 by 2030, the potential for further interference grows.

Professor Dempsey advocates for regulatory action and technical solutions, such as improved shielding of satellite components, to reduce radiation. Without these measures, astronomers fear that the night sky will become increasingly dominated by artificial signals, overshadowing the natural celestial wonders.

The findings highlight a growing tension between the expansion of satellite networks and the preservation of scientific observation, underscoring the need for a balanced approach to space exploration and research.