0208 364 3444
As we approach the final Monetary Policy Committee (MPC) meeting of 2024, set for December 19th, all eyes are on the Bank of England (BoE) and their impending interest rate decision.
With market indications showing a less than 10% likelihood of a rate cut this week, we delve into the potential moves for 2025 and their implications for the UK property market.
MPC’s Final 2024 Meeting: A Closer Look
This week’s meeting, crucially the last of the year, is anticipated not just for its decision but for the signals it may send about monetary policy in 2025. Despite a tough year with stubborn inflation and cautious central banking, traders are hopeful, with the market predicting over 80 basis points in cuts throughout the next year.
UK Economic Challenges: A Snapshot
Recent data revealed a contraction in the UK economy by 0.1% in October, marking a concerning trend of stagnation. This economic backdrop makes the MPC’s cautious approach to rate cuts understandable, despite the pressures of high living costs and fiscal policy decisions that may stir inflation.
2025: A Year of Anticipated Cuts?
Investors and analysts alike are eyeing a potential series of rate reductions next year. Governor Andrew Bailey has always said that rates should not fall too far too quickly. But he has also recently signaled there could be four rate cuts next year. This is likely to alleviate some of the cost-of-living pressures without destabilising economic recovery efforts.
Get in Touch
Want to explore the mortgage options available to you? Contact us today at 0208 364 3444 or click here to schedule a free consultation call and take the first step towards securing your mortgage.
Note: We will be closed for holidays from Monday 23 December and reopening Monday 30 December. We wish all of our valued customers a Merry Christmas and a happy healthy New Year