Interest Rates Remain Unchanged @ 4.75%.

19^th December 2024. UK interesting rates have been held at 4.75% after the Bank of England voted to keep borrowing costs unchanged.

On Thursday the Bank of England Monetary policy met and decided to keep rates unchanged, there had been anticipation that economy had improved since the last meeting in October and up to December, but unfortunately it had remained static with no growth. 

The BBC reported that three of the nine members rate setting committee wanted to reduce the rates to 4.5% to boost growth, but with no growth, and figures this week show that both inflation was higher than the Banks target and wages were growing faster than expected.   The economy is struggling, and the expected 0.3% target actual remains at an anticipated 0% for the final weeks of December and January.

The BBC further reports that from the minutes the Bank said, “that there was uncertainty from the minutes around how the measures that had been announced in the Autumn budget that were affecting growth”.

Commenting on the decision, Bank governor Andrew Bailey said: “We think a gradual approach to future interest rate cuts remains right but with the heightened uncertainty in the economy we can’t commit to when or by how much we will cut rates in the coming year.”

In looking forward to next years, The committee next meets in February. It will be good to know how the economy has fared in early 2025 and if there is controlled growth in the economy then a rate cut could be favourable.

Any fall in interest rates in 2025 will likely be gradual.  Chris Pearson feels that any interest rate cut would, at the very least, help first buyers to get onto the property ladder. With any increase in financial security, people are likely to move. The housing market is considerably based on confidence. We remain confident in positive growth, within the Dorset property sector, throughout 2025.