Bank of England Expected to Keep Rates Steady at 5.25%
Think of the Bank of England (BoE) as a seasoned DJ— when the track’s just right, all they do is keep the groove going. This week, most analysts are leaning toward the same conclusion: rates will stay put at 5.25%.
What the Experts Are Saying
- James Smith, ING Economist is calling the Monetary Policy Committee (MPC) meeting “predictably tame.” “You just need one slippery soul in the room to flip the script,” he quips, but he’s not buying the hype.
- Investec’s View is a bit more cautious. They admit the case for a rate hike wanes compared to last week, citing multiple new drag‑in‑the‑water points. In plain terms: a raise is unlikely but not off the table.
- Susannah Streeter, Head of Money & Markets at Hargreaves Lansdown paints a moodier tableau: rising mortgage costs are making households behave like they’re tightening their belts. “Budget cuts are piling up—think frugal shopping, job‑security jitters, and cautious pay demands,” she notes.
The Bigger Picture
Even as the economy seems to have taken a nosedive into flatland, and housing prices keep slipping, there’s a strong suspicion that return on wages and goods prices are cooling off. That, combined with the relentless rollercoaster of inflation and sticky oil prices, means a rate cut feels like a distant dream—more likely in the second half of next year.
Why Holding Steady Matters
Staying steady at 5.25% keeps the financial markets from turning into a wild circus. For homeowners, it means no immediate jump in mortgage payments, though the long-term game plan still depends on whether the housing market will take a longer pause.
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