BREAKING NEWS! - Bank of England holds rates at 5.25% for third time

The Bank of England has decided to hold the base interest rate at 5.25% for the third consecutive review. The last review was 02 November 2023. The Bank's Monetary Policy Committee (MPC) meets eight times a year to set interest rates. Its nine members vote on whether to increase, reduce or hold interest rates. At the last decision, six of them voted for no change and three voted for an interest rate hike. The same happened this time around too.

Bank Governor Andrew Bailey says:

“We’ve come a long way this year and successive rate increases have helped bring inflation down from over 10% in January to 4.6% in October, but there is still some way to go. We’ll continue to watch the data closely, and take the decisions necessary to get inflation all the way back to 2%.”

The decision to hold rates follows on from the US Federal Reserve holding interest rates yesterday with financial markets believing it’s likely the US will begin cutting interest rates next year.

The Royal Institution of Chartered Surveyors Residential Market Report revealed this morning that cheaper mortgages are starting to have a positive impact on the housing market with declines in national house prices slowing and sales expectations for the year ahead the most positive since January 2022.

Source - The Negotiator


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