‘Almost certain’ good news coming today for anyone buying a home | Personal Finance | Finance
Experts are preparing to relax with the UK Bank, which is ready to reduce interest rates for the fifth time in a year on Thursday. The Bank’s Monetary Policy Committee (MPC) is expected to reduce its basic rate by 0.25 percent.
This would mark the fifth decrease since last year, when the rates began to fall from a summit of 5.25%. If the base ratio of the bank is further reduced, it may print for some mortgage holders and home buyers, hoping that cheaper agreements will enter the market.
Economists think that slowing and stagnant economic growth in the British labor market can encourage MPC to facilitate monetary policy. Official data from the National Statistics Office (Ones) showed that the unemployment rate of the UK rose to 4.7% from three months to May – the highest level for four years.
And the average earning growth slowed down to 5% in May, except for bonuses, and slowed down to the lowest level for almost three years. Bank of England Governor Andrew Bailey said at the beginning of this month if the labor market shows signs of slimming, the bank would be ready to reduce rates.
In addition, Ones data showed the contract of the British economy in both April and May, which put pressure on policy makers to alleviate borrowing costs. Matt Swannell, Chief Economic Advisor to Matter Club, said that a percentage score of 0.25 on Thursday was “almost definite” in the middle of a “stagnant” economy.
He said that the latest survey data, which is closely monitored by economists, is struggling with wider geopolitical uncertainties that focuses on higher labor costs and investment plans.
“MPC’s signs of fragility in the labor market, the committee of the ongoing inflation pressure in the labor market, the committee will probably show that gradual interest rates remain appropriate.”
Deutsche Bank senior economist Sanjay Raja said that the economy has been “weaker than MPC since the economy has published a last monetary policy report. Unemployment rate is slightly higher, wage growth weakened and said the surplus increased.
However, MPC said it would be “a rock and a difficult place” and probably would lead to a divided vote in the nine -person committee. To protect the two members as 4.25%, and the other prefers a larger 0.5 percent point.
Considering the risk balance of risk to the economy, other economists said that they would follow any comments about future ways for future interest rates.
Some policy makers may be more concerned with their latest inflation data, and prices increase in June 15 months in June. Increasing food inflation has put pressure on the overall ratio in recent months.
