Bank of England expected to cut interest rates

The UK interest rates are expected to be cut to a large extent on Thursday and reduce the borrowing cost to the lowest level for more than two years.

The financial markets estimate that the Bank of England will reduce interest rates to 4.25% in the fifth deduction since last August and will reduce it to the lowest level since March 2023.

A lower base ratio can reduce monthly mortgage costs for some hosts, but also means a smaller return to the preservatives.

The UK Bank will also publish its predictions An economic that cannot grow in April and May – Creating a potentially stretching gap The government may choose to fill in the autumn budget by declaring tax increases.

Next week, the National Statistics Office will publish data on how the UK economy performance between April and June.

It increased by 0.7% in the first three months of the year.

According to Moneyfacts, if the bank ratio ratios, repayments over average £ 250,000 for 25 years on the mortgage of £ 250,000 will drop by £ 40 per month.

However, the average return rate for the preservatives will decrease from 3.9% to 3.5% in August last year.

“Save rates are worse, and reducing each base ratio will create more misery for the preservatives,” Moneyfacts Finance Specialist Rachel Springall said. He said.

In spite of inflation that measures the speed of price increases, interest rates are expected to be cut off.

Until June, Inflation rose to 3.6% Partly due to the cost of food and clothing, as well as air and railway travel.

However, there are signs that the UK employment market has cooled on inflation.

The latest figures show that the number of people in the payrolls has fallen, empty positions are lower and the unemployment rate is higher.

Meanwhile, annual growth in average normal earnings except bonuses, It slowed down to 5% between March and May.

Employers face higher costs, including the increase in national insurance contributions and the national minimum wage.

When we decide in 1200, we will give you a live report from the bank when we receive an expert analysis of what it means for you and your money.

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