Posted: 4th October 2024
Mortgage Rates Drop as Bank of England Maintains Base Rate at 5%
Banks and building societies are reducing their mortgage rates, even in light of the Bank of England's decision to maintain the base interest rate at 5%.
Mortgage lenders are lowering their rates despite the Bank of England's announcement yesterday to keep the base interest rate steady at 5%.
The Bank's Monetary Policy Committee voted 8–1 in favour of maintaining the rate at 5%, following a 0.25% cut made last month.
While many experts anticipated that the Bank would hold the rate this time, there is speculation that a reduction could occur in November and December, contingent upon the assessment that the battle against inflation has been won.
The inflation rate remained persistently at 2.2% in July, as reported yesterday, which may have influenced the Bank of England's decision to refrain from cutting.
Additionally, the Federal Reserve in the United States recently lowered its base rate for the first time in four years, leading some analysts to believe that this development might prompt the Bank to reconsider its stance on the UK rate.
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