Interest Rate Cut - Experts downplay chances for next week
It seems like the consensus among experts is that a rate cut from the Bank of England in the immediate future is unlikely. Sarah Coles from Hargreaves Lansdown suggests that while there's speculation about a rate cut, it's more probable to happen later in the year, with August or September being the favored timeline. She highlights that the mortgage market has already adjusted to these expectations, leading to recent rate increases.
The analysis also considers factors such as wage growth and inflation, which could influence policymakers' decisions. With wage growth still robust and concerns about companies passing on higher costs to customers, there's a cautious approach to rate cuts.
Bloomberg Intelligence's view on the housing market echoes this sentiment, emphasizing that while there's an improvement in housing sentiment and indicators, the expectation for rate cuts has been delayed. They anticipate only limited cuts in the near future, which contrasts with some economic forecasts that predict more significant decreases in the benchmark rate.
Overall, the prevailing sentiment is that the housing market is showing signs of recovery, but the timing and extent of rate cuts will play a significant role in further stimulating activity. The upcoming Monetary Policy Committee meeting will be closely watched for any indications of future policy direction.
Want to sell or let your property ?
We are estate agents and letting agents in Leytonstone, E11 and we are specialists in the East London property market. Request a free valuation and one of our experts will get in touch with you to discuss how we can help you.
