Financial markets are now pricing in a interest rate cut for the UK at the next Bank of England meeting in November following remarks by its governor.
Andrew Bailey told the Guardian that the bank could be “a bit more aggressive” in its approach, after acknowledging that inflation pressures have been less persistent than expected.
The Bank cut interest rates from 5.25% to 5% in August, which was the first drop in more than four years.
UK estate agents have already reported more buyer interest after August’s BoE rate cut.
A further cut to interest rates would be a welcome move for property buyers, sellers, and of course, estate agents.
A recent Reuters poll found that nearly 80% of economists, 49 of 65, expect one more rate cut this year. But that was before Bailey’s latest comments yesterday.
The Bank of England has two more more meetings left this year to decide on interest rates, in November and December.
Many analysts expect the Bank to reduce rates at its meeting in November. However, following Bailey’s interview with the Guardian, expectations increased of a rate cut in December as well, which would likely to put the end-year rate at 4.5%.
Mortgage rate war heats up as major lenders cut rates again
