Thursday 19 Sep Interest Rate Cut Announcement

Insider's Chantelle Dietz discusses today's Interest Rate Cut news with Stephen Farrell

Transcript

00:00Hello, I'm Stephen Farrell and I'm Chantelle Dietz. So Chantelle, we just had the

00:04announcement from the Bank of England on interest rates. What's been announced?

00:07Well, the Bank of England have decided to hold rates at 5% this time. The Monetary

00:12Policy Committee voted 8 to 1, so quite high majority, to keep the rate

00:17unchanged. The decision was based on slower economic growth and inflation

00:22being slightly above the target. We're currently at 2.2% and the target is 2%.

00:26And so what's that likely to mean for businesses? Well, borrowers were probably

00:31hoping for another cut this time, following August's cut, but since then

00:36mortgage rates have been decreasing and the range of products has been

00:40improving as well, so that's led to an improved sentiment in the market and

00:45developers are becoming more active, more home buyers are coming into the market.

00:49So I think today's announcement isn't likely to dent that growing market

00:54positivity. Oh, that's good to hear. And when can we expect the next announcement?

00:59The next announcement is on the 7th of November, so after the budget, so they'll

01:03meet again then and economists are anticipating that there might be another

01:08rate cut then, but it all depends obviously on the inflation trends.

01:13Great. Well, thank you for watching and we'll see you again soon.