Rates of interest LIVE: Financial institution of England poised to cut | U.Ok.Finance Information
With the UK’s growth forecasts for 2025 downgraded to only 1%, there may be growing stress on the Financial institution of England to scale back rates of interest in a bid to stimulate the financial system.
Nonetheless, whereas a price cut may be on the horizon, consultants warn that such a transfer might not present the instant aid some count on.
Alistair Douglas, CEO of TotallyMoney, mentioned: “With UK growth forecasts downgraded to just 1% in 2025, the Government will be doing anything and everything in its power to get the economy on track. And that probably means that Rachel Reeves has been frantically phoning her ex-colleagues at the Bank of England to see if they can swing a rate cut this week. However, that alone is unlikely to have a seismic impact on consumer finances, with mortgage lenders already factoring cuts into their pricing, and banks slashing savings rates.”
He continued: “The good news is that the Chancellor is exploring longer-term solutions, including a £78 billion Oxford-Cambridge Growth Corridor, a new Heathrow runway, and a £20million investment in rocket-maker, Orbex. But the truth is that these big projects take time to launch, and to make an impact.”
Mr Douglas added: “In the meantime, businesses and employees will be feeling the pinch from employers’ National Insurance contribution hikes and frozen personal tax thresholds. And over the next few months, everything from energy and water, to phone and broadband bills will increase, while the government has also given the green light to council tax hikes of up to 10%.
“A more balanced approach would help the economy in the short-term, and give people more confidence in the government and its ability to turn things around.”
Keep up to date with the latest news within the European markets! Our web site is your go-to source for cutting-edge financial news, market trends, financial insights, and updates on regional trade. We offer every day updates to make sure you have entry to the freshest data on stock market actions, commodity costs, currency fluctuations, and main financial bulletins throughout Europe.
Discover how these trends are shaping the long run of the European financial system! Go to us commonly for probably the most partaking and informative market content material by clicking right here. Our fastidiously curated articles will keep you knowledgeable on market shifts, investment methods, regulatory developments, and pivotal moments within the European financial panorama.
