Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

UK interest rates remain at 16-year high of 5.25%

by May 9, 2024
May 9, 2024
UK interest rates remain at 16-year high of 5.25%

The Bank of England has opted to keep interest rates unchanged at 5.25%, marking the sixth consecutive meeting at this 16-year high level.

However, there are signals from the central bank indicating a potential shift towards a rate cut, possibly as early as June.

Andrew Bailey, the Governor of the Bank of England, hinted at a possible rate reduction in the near future, citing more positive developments in inflation trends. Dave Ramsden, the deputy governor, joined by Swati Dhingra, an external MPC member, voted for a 0.25 percentage point rate cut, citing a firm downward trajectory in inflation.

Although the decision to keep rates stable was made at this meeting, the MPC emphasized that if incoming economic data continues to support the trend of decreasing inflation, rate cuts could be considered at either the June or August meetings. This move could offer relief to homeowners and stimulate demand in the housing market.

Speculation surrounding the Bank’s rate cut strategy has affected mortgage rates, with predictions indicating that the Bank may lower rates twice this year, each by quarter-point increments. Rishi Sunak, the Prime Minister, is counting on a gradual reduction in interest rates to bolster the Conservative Party’s general election campaign, slated for the autumn.

The Bank of England initially raised interest rates significantly in response to soaring inflation levels, reaching a peak of 11.1% in October 2022. However, inflation has since fallen to 3.2%, prompting considerations for rate adjustments.

While the Bank remains cautious, awaiting more evidence of sustained low inflation before implementing rate cuts, there is optimism that inflation will approach the 2% target in the coming months. However, downward pressure on inflation from lower energy costs is expected to diminish over time.

Despite potential rate cuts, the Bank emphasized the need for restrictive monetary policy to ensure long-term inflation stability. Forecasts for the UK economy suggest modest growth in GDP, with unemployment expected to rise to a peak of 4.9%.

Ultimately, seven members of the MPC, including Bailey, Pill, and Broadbent, voted to maintain the UK base rate at 5.25%, underscoring the cautious approach of the Bank amid evolving economic conditions.

Read more:
UK interest rates remain at 16-year high of 5.25%

0
FacebookTwitterGoogle +Pinterest
previous post
The Blockchain Integrity Act: Latest Attempt to Restrict Financial Privacy
next post
It’s Time to Defund the OECD

You may also like

Disney claims widower cannot sue over wife’s death...

August 15, 2024

Banks ‘risk reputations’ by failing to help borrowers

February 14, 2023

Starlink set to power rural NHS GP surgeries...

March 10, 2025

How to Secure Your Website Against Data Breaches

July 25, 2024

10 Tips to Pick Long-Term Investment Opportunities

September 27, 2024

Vinyl Records and Air Fryers Join ONS Inflation...

March 11, 2024

Martha Lane Fox to co-chair government panel driving...

October 2, 2024

Sir Patrick Vallance Champions Labour’s Accelerated Green Energy...

May 31, 2024

We should be in a stand-off with China,...

May 7, 2024

Location tech scaleup Navenio secures $6.3m to boost...

September 20, 2023

Disney claims widower cannot sue over wife’s death...

August 15, 2024

Banks ‘risk reputations’ by failing to help borrowers

February 14, 2023

Starlink set to power rural NHS GP surgeries...

March 10, 2025

How to Secure Your Website Against Data Breaches

July 25, 2024

10 Tips to Pick Long-Term Investment Opportunities

September 27, 2024

Vinyl Records and Air Fryers Join ONS Inflation...

March 11, 2024

Martha Lane Fox to co-chair government panel driving...

October 2, 2024

Sir Patrick Vallance Champions Labour’s Accelerated Green Energy...

May 31, 2024

We should be in a stand-off with China,...

May 7, 2024

Location tech scaleup Navenio secures $6.3m to boost...

September 20, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Democrats project doom and gloom, not celebration, with July 4 messages

      July 5, 2025
    • Xi Jinping’s surprise no-show at BRICS Summit fuels speculation about China’s global standing

      July 5, 2025
    • Tesla sees UK sales rebound in June as EV market accelerates

      July 5, 2025
    • Hived raises $42m to roll out electric delivery fleet across southern England

      July 5, 2025
    • Week Ahead: NIFTY Set To Stay In A Defined Range Unless These Levels Are Taken Out; Drags Support Higher

      July 5, 2025
    • “A turning point for education”: James Caan launches bold education reform plan in House of Lords

      July 5, 2025

    Categories

    • Business (8,397)
    • Investing (2,102)
    • Politics (15,947)
    • Stocks (3,190)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved