* Bank of England expected to cut interest rates from 4% to 3.75%, the lowest level since February 2023
* Decision due Thursday and will be the final rate decision of the year
* Move driven by signs of cooling inflation and a slowing UK economy
* CPI inflation fell to a four-month low of 3.6% in October, helped by slower rises in gas and electricity prices
* Economists believe easing inflation supports the case for a rate cut
* AJ Bell says a cut would be “festive news” for borrowers
* Investec notes recent tax measures will not materially affect the current interest rate debate, though frozen income tax thresholds continue to weigh on the economy
* Oxford Economics says a cut is likely but not certain, with the MPC deeply divided
* Four of nine MPC members are expected to oppose the cut
* Final decision likely to hinge on Governor Andrew Bailey, who sees improving inflation prospects
* US Federal Reserve has also cut rates, but signalled caution over further easing
* Bank of England expected to focus on reaching its 2% inflation target rather than delivering multiple cuts next year
* Autumn Budget seen as less helpful in reducing inflation than expected, as income tax rates were not raised
Cottonshopeburnfoot on
Keep it up guys! At least until I remortgage this year then idgaf
radiant_0wl on
It’s likely they’ll cut it.
But there’s also arguments that they shouldn’t – inflation is still way above target and projected to remain it for the entire of 2026.
Supermarket food cost inflation is projected to be in excess of 5% next year due to NMW, business rate increases.
A faltering economy isn’t a concern for the MPC only the projected impacts it may have on the inflation target, a deduction may help the economy but it’s counterproductive to their inflation target.
Safe-Avocado4864 on
Inflation isn’t at or below 2% yet so this seems like a “we need growth now to avoid a recession” move.
Mjukplister on
Thank FUCK for that , my heart really does go out to people who have been broken by their mortgage going through the roof .
ChickenPijja on
Again, the Fed does something, we copy it a couple weeks later. What’s the point in having the BOE if they just copy + paste what America is doing? Inflation is still high here, near double the 2% target, higher if you only look at the things people spend on regularly (groceries, energy, bills), and that’s what’s killing UK confidence.
JinxxMachina on
I’m on a fix at 1.64% until summer 2027. At least one thing is going my way for a change.
floodtracks on
And that’ll mean my student loan will go down again. Right guys? Right???? [cries in 6.2% post-grad loan]
mixxituk on
This government is ruining this country – somehow – I will find a way to make it so
BeneficialVariety171 on
Never been happier to take the 5 year fix in 2023. Hope it keeps going down enough for remortgage in 2028. Fingers crossed!
sheffieldpud on
Currently on 2.5% and renew in June so I’m really hoping we fall to around that or below!
11 commenti
TL:DR:
* Bank of England expected to cut interest rates from 4% to 3.75%, the lowest level since February 2023
* Decision due Thursday and will be the final rate decision of the year
* Move driven by signs of cooling inflation and a slowing UK economy
* CPI inflation fell to a four-month low of 3.6% in October, helped by slower rises in gas and electricity prices
* Economists believe easing inflation supports the case for a rate cut
* AJ Bell says a cut would be “festive news” for borrowers
* Investec notes recent tax measures will not materially affect the current interest rate debate, though frozen income tax thresholds continue to weigh on the economy
* Oxford Economics says a cut is likely but not certain, with the MPC deeply divided
* Four of nine MPC members are expected to oppose the cut
* Final decision likely to hinge on Governor Andrew Bailey, who sees improving inflation prospects
* US Federal Reserve has also cut rates, but signalled caution over further easing
* Bank of England expected to focus on reaching its 2% inflation target rather than delivering multiple cuts next year
* Autumn Budget seen as less helpful in reducing inflation than expected, as income tax rates were not raised
Keep it up guys! At least until I remortgage this year then idgaf
It’s likely they’ll cut it.
But there’s also arguments that they shouldn’t – inflation is still way above target and projected to remain it for the entire of 2026.
Supermarket food cost inflation is projected to be in excess of 5% next year due to NMW, business rate increases.
A faltering economy isn’t a concern for the MPC only the projected impacts it may have on the inflation target, a deduction may help the economy but it’s counterproductive to their inflation target.
Inflation isn’t at or below 2% yet so this seems like a “we need growth now to avoid a recession” move.
Thank FUCK for that , my heart really does go out to people who have been broken by their mortgage going through the roof .
Again, the Fed does something, we copy it a couple weeks later. What’s the point in having the BOE if they just copy + paste what America is doing? Inflation is still high here, near double the 2% target, higher if you only look at the things people spend on regularly (groceries, energy, bills), and that’s what’s killing UK confidence.
I’m on a fix at 1.64% until summer 2027. At least one thing is going my way for a change.
And that’ll mean my student loan will go down again. Right guys? Right???? [cries in 6.2% post-grad loan]
This government is ruining this country – somehow – I will find a way to make it so
Never been happier to take the 5 year fix in 2023. Hope it keeps going down enough for remortgage in 2028. Fingers crossed!
Currently on 2.5% and renew in June so I’m really hoping we fall to around that or below!