The Bank of England reduced the base rate from 5 per cent to 4.75 per cent yesterday, following a 0.25 percentage-point cut in August, which was the first drop in four years.
Governor Andrew Bailey said rates were likely to “continue to fall gradually from here”, but warned they could not be cut “too quickly or by too much”.
But the Bank’s Monetary Policy Committee (MPC) forecast that Rachel Reeves’s first budget as chancellor would push up inflation by up to half a percentage point over the next two years, contributing to a slower decline in interest rates than previously thought.
Measures such as raising the bus fares cap and VAT on private school fees would drive prices up at a faster rate, the committee said.
These moves are predicted to increase inflation by 0.3 percentage points next year.
The base rate cut came despite the fact that fixed-rate mortgages and savings rates have gone up this week and are expected to rise further over the coming weeks.
Esta historia es de la edición November 08, 2024 de The Independent.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición November 08, 2024 de The Independent.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
STOLEN MOMENTS
The antics of the gentleman thief in EW Hornung's 'Raffles' bring Anthony Quinn as much joy as when he was a child.
Can Glaser give Hollywood the roasting it deserves?
The stand-up comedian's close-to-the-bone comedy makes Nikki Glaser the ideal choice to host tomorrow's Golden Globes. Move over, Ricky Gervais, writes Kevin E G Perry
'I'd just turned 18... I don't think I was remotely sexy'
Little Mix's Jade Thirlwall is newly solo with a debut electropop hit to her name. She talks to Annabel Nugent about the downside of fame and how she's never feared 'clapping back'
The disruptor: why Musk is a risk to German democracy
The tech billionaire's move to support the AfD is proof he is determined to unsettle a nation that knows all too well what far-right dictatorship can bring, writes John Kampfner
Slot turns transfer saga into surprise Liverpool benefit
Arne Slot has claimed that the saga about Trent AlexanderArnold's future is helpful to him as it prevents his Liverpool players from being overloaded with praise that could make them complacent.
United 'are starving for leaders', admits Amorim
When Ruben Amorim got to convey good news, it still came with a demand.
Still a teenager but there are few weaknesses in his game
Whether he beat or lost to Michael van Gerwen on the Alexandra Palace stage on Friday night, Luke Littler was al going to leave his second World Darts Championship as a winner.
Littler makes history after winning world title aged 17
Darts has a new world champion, and he's a 17-year-old boy from Warrington.
The hot UK industry that could be facing a wipeout
Don't tell Liam and Noel, but the biggest entertainment event of 2025 won't be their reunion, it'll be the launch of Grand Theft Auto VI.
Taxes to rise again despite growth, warn economists
A group of economists have warned that the Treasury is likely to raise taxes even further this year, despite an expectation that the country will return to growth in 2025.
