Britons have been warned that the Bank of England interest rate cuts are set to slow as the UK economy faces “upward pressure” after Rachel Reeves’ Budget.
Following the Autumn Budget, investors have scaled back predictions for additional interest cuts in 2024, now anticipating fewer than four quarter-point reductions next year.
The Bank of England is expected to cut interest rates this week, lowering the base rate to 4.75 per cent from its current five per cent.
The decision is likely to be supported by a clear majority of the Monetary Policy Committee, with analysts predicting an eight to one vote in favour of the cut.
Investors had previously expected another rate cut in December, but this may not be the case.
If the interest rate drops at the next meeting, it would be the second interest rate cut of 2024, following the previous decrease in August.
The US Federal Reserve is also expected to lower rates by a quarter-point
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Meanwhile, the US Federal Reserve is also expected to lower rates by a quarter-point on Thursday, as inflation nears its two per cent target.
This anticipated…
