Interest rate cut in February a "sure bet"
Leading UK economists are predicting an interest rate cut in February, with one claiming it is a "sure bet".
Luke Bartholomew, deputy chief economist at ABRDN, told the press: “With inflation coming in softer, the ongoing weakness in growth will further tip the Bank of England towards easing again at its next meeting in February.”
Thomas Pugh, UK economist at RSM UK, concurred that the combination of weaker-than-expected inflation and economic growth “means an interest rate cut in February is now a sure bet”.
Pressure is growing on the Bank of England to resume cutting interest rates next month after official data revealed weaker inflation and low economic growth.
The most recently available forecasts published by HM Treasury shows the City expects inflation and GDP growth to average 2.5% and 1.3% respectively this year.
Traders now expect to see between two and three quarter-point cuts in 2025, taking base rate at low as 4% by year-end. That will be welcome news to those paying mortgages, including landlords. It may help to ease the upward surges in rent prices we have seen of late.
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