x
By using this website, you agree to our use of cookies to enhance your experience.


TODAY'S OTHER NEWS

Inflation set to hit 2% target - will interest rates be cut?

The latest inflation figures this morning are expected to show that the cost of living measure has slowed to the Bank of England’s 2% target.

This may give estate agents a boost as it raises hopes of an interest rate cut in the coming months that could boost buyer budgets and market confidence.

But the Bank of England isn’t expected to cut rates from 5.25% at its latest meeting this Thursday amid fears that it could be seen as a political gesture timed with the General Election.

There may also be fears that wage growth remains high and there needs to be evidence that inflation won’t shoot back up.

But Paula Higgins, chief executive of the HomeOwners Alliance, warned people have had enough of “punishingly high interest rates.”

She said:  "Inflation is no longer running at 10% - it’s almost at its 2% target. And yet the Bank of England continues to use it as an excuse to keep interest rates at the current 16 year high. We think it's unacceptable that homeowners are held ransom by the Bank of England in this way.

“Signalling that rate cuts are on the horizon is not enough. We've been hearing that since March. Homeowners' best-laid financial plans are on hold as they bear the brunt of the Bank of England's monetary experiment. We cannot see any justification for this continuing.

“The burden is too heavily borne by mortgage borrowers. This is why we're calling on the Bank of England to stop this attack on homeowners and drop the base rate this Thursday." 

icon

Please login to comment

MovePal MovePal MovePal