Bailey: We’re not out of the woods yet on inflation
The Bank governor, Andrew Bailey, has warned that the UK is ‘not out of the woods’ in the cost of living squeeze.
Announcing today’s decision to leave interest rates on hold, Bailey said:
“Although we expect inflation to return to our 2% target, we’re not out of the woods yet so any future cuts will need to be made gradually and carefully.”
Food prices have been a key factor pushing up inflation, and there are forecasts that food inflation will rise towards 5.5% by the end of the year.
Away from the Bank of England, shares in Intel are surging after Nvidia, the world’s leading chipmaker, announced plans to invest $5bn in its smaller rival.
Intel’s shares have jumped by 24% after Nvidia announced it would team up with the firm to work on custom data centers that form the backbone of artificial intelligence (AI) infrastructure, as well as personal computer products.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, says the deal is “a strategic alliance with geopolitical undertones”, explaining:
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“Nvidia’s $5 billion investment in Intel is less about money and more about influence. The deal deepens cooperation between two US chip giants, with Intel set to use Nvidia’s GPU technology and Nvidia gaining a stronger foothold in domestic chip production.
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For Intel, this is another welcome boost, both financially and strategically, as it leans on Nvidia to stay competitive. But even with the US government and Nvidia on side, it’s one step short of a home run for the foundry business, which is struggling to attract the major customers it needs to succeed against the might of TSMC.
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First published on Thu 18 Sep 2025 07.35…
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