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    Bank of England expected to cut interest rates to nearly three-year low
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    Bank of England expected to cut interest rates to nearly three-year low

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    1. Discarded_Twix_Bar on

      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

    3. 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.

    4. 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.

    5. 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 .

    6. 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.

    7. JinxxMachina on

      I’m on a fix at 1.64% until summer 2027. At least one thing is going my way for a change.

    8. floodtracks on

      And that’ll mean my student loan will go down again. Right guys? Right???? [cries in 6.2% post-grad loan]

    10. 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!

    11. sheffieldpud on

      Currently on 2.5% and renew in June so I’m really hoping we fall to around that or below!

    12. Illustrious-Engine23 on

      My mortgage advisor said I should follow up with them when the rate drops so I can get a better deal, hopefully.

      But then again rock bottom interest rates is part of what keeps house prices unaffordable low.

    13. Prestigious_Spot9635 on

      These guys have no clue. Dangerous lowering rates to artificially prop up the market

    14. mturner1993 on

      Dec 2028 remortgage for me. Did 5 years hoping we would be more into the 2’s. I think BOE will settle at 2.5% eventually. Can’t see it being 1s again if we are adamant at chucking minimum wage up 7% a year.