Property Market reacts to bank of England’s interest rate decision

Posted in Jul 02 , 2024

The Bank of England has maintained the existing interest rate for the seventh time in a row. UK interest rates have not moved since the Bank of England raised them to 5.25% last August.

The decision to freeze rates again comes as inflation, which measures price rises over time, falls back to the 2% target, as revealed yesterday as well as the interest rate decision, the Bank has just released its latest forecast estimating what will happen to inflation and the UK economy.

The Bank of England governor Andrew Bailey believes that it is not yet the time to reduce interest rates. Markets are only fully pricing in a cut in September, but many economists had hoped that the Bank would make a move this month to cut rates.

One last hold in June? There is still a chance that rates could be reduced when the bank’s Monetary Policy Committee meet in August. In a sign the central bank may be getting closer to cutting rates, the BoE policy minutes said the decision had been “finely balanced”.

https://propertyindustryeye.com/property-industry-reacts-to-bank-of-englands-interest-rate-decision

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