Rachel Reeves to call for rapid AI adoption and deeper ties with EU to boost growth – business live

Rolling coverage of the latest economic and financial news

The spectre of ‘Trumpflation’ is looming over Rachel Reeves’s Mais lecture today.

The jump in energy prices, and expectations of higher inflation, have driven up mortgage rates since the Iranian war began.

Average 2-year fix has risen from 4.83% at the start of March to 5.28% today. It’s highest since April 2025.

Average 5-year fix has risen from 4.95% at the start of March to 5.32% today. It’s highest since February 2025.

“War in the Middle East has added almost £800 to a typical annual mortgage bill in just two weeks, which will be unwelcome news for anyone currently seeking a fixed rate deal.

“The average two-year fixed rate has jumped from 4.83% at the start of March to 5.28% today – its highest level since April 2025. The average five-year fix has risen from 4.95% to 5.32%, now at its highest since February 2025. For a borrower with a £250,000 mortgage over 25 years, that equates to paying £788 more per year on a two-year fix, or £651 more on a five-year deal compared to just a fortnight ago.