2024-11-07 13:29:09
Economy
Banking
Finance

Bank of England's Cautious Rate Cut Amid Economic Concerns

The Bank of England has reduced interest rates to 4.75%, a decision influenced by potential inflationary pressures from Chancellor Rachel Reeves's budget. While the central bank projects a rise in inflation and GDP due to increased living wages and other measures, it also aims to maintain inflation near the 2% target.

Some economists advocate for holding rates steady, wary of external factors like US tariffs under a potential Trump presidency that could further inflate costs. Despite the cut being viewed positively by some, households are still grappling with economic challenges.

The Bank's governor emphasized a gradual approach to future rate reductions, contrasting with market expectations for quicker cuts. Additionally, the impact on mortgages will be limited, as a significant majority are on fixed rates.

Overall, while the rate cut offers some relief, the broader economic landscape remains complex and uncertain.

The Guardian
7. November 2024 um 05:00

City analysts overwhelmingly predict Bank of England interest rate cut

Economy
Finance
Politics
The Bank of England is expected to cut interest rates from 5% to 4.75%, the second reduction in this cycle after raising rates from 0.1% to 5.25% in 14 consecutive jumps from December 2021 to August 2023. The US Federal Reserve is also expected to cut rates, despite expectations of lower growth and higher inflation under a potential second Trump presidency.
EuroNews
7. November 2024 um 09:46

Bank of England set to make decision on UK interest rate

Economy
Finance
Politics
Bank to cut UK rate; inflation low; Monetary Policy Committee cut rates; Chancellor's spending, tax hikes; Trump's tax cuts, tariffs may raise inflation; US Fed also expected to cut rates.
The Guardian
7. November 2024 um 12:01

Bank of England cuts interest rates by 0.25 points to 4.75%

Economy
Finance
Politics
The Bank of England cut interest rates to 4.75% despite concerns that Rachel Reeves's budget will increase inflation by raising the national living wage and Ofgem energy price cap. The central bank expects the chancellor's tax and spending plans to add 0.5 percentage points to inflation and 0.75% to GDP. However, the Bank signaled that borrowing costs are likely to continue falling gradually as it aims to keep inflation close to the 2% target. External economist Catherine Mann pushed for rates..
The Guardian
7. November 2024 um 13:27

Does the Bank of England’s interest rate cut mean lower mortgages?

Finance
Economy
The Bank's interest rate cut will have a limited impact on mortgages. 82% have fixed-rates, so won't see changes. Tracker and SVR borrowers may see lower payments, but lenders aren't obligated to pass on the full cut. Fixed-rates are priced on market expectations, not the base rate. The average two-year is 5.42%, five-year is 5.13%. Remortgage offers are valid for up to six months. Some consider base rate trackers for expected cuts. Mortgage broker Nicholas Mendes expects rates to return to the..
CW

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