There is a low chance that the Bank of England will reduce interest rates tomorrow, but two more cuts are expected before the end of 2025.
A poll of 61 economists by Reuters suggested that this time the central bank would keep rates at 4.5% and the next reduction could follow in May. August and November were named months for further potential cuts.
If the basic rate was reduced, this would have the most important impact on people with tracker mortgages or variable speed products, because this means that they would benefit from lower repayments.
For those who are looking for a new mortgage with a fixed rate, the price reductions have already been implemented by lenders who are influenced by exchange rates Instead of the basic rate of the Bank of England.
Many borrowers will hope that if there is no cut tomorrow, they will see reductions in the coming months, as the markets predict. But Laith Khalaf, head of investment analysis at AJ Bell, said that there were “substantial risks for these prospects.”
He said: “The last inflation reading for January came in hot and the macro -economic situation is fleeting because Donald Trump’s trade policy is in danger of unleashes a global trade war that could damage growth and increase inflation.
“The Spring statement in the UK Can also contain some tax and spending decisions that have an effect on the interest rate rate in one way or another. In April we will see that the national insurance of the Chancellor and the minimum wage increases come in force, which could also serve to increase prices for consumers, making the Bank of England on their care for reducing rates. “
He added: “At the last mood, two members wanted to lower the rates to 4.25%, which shows some willingness to stimulate the economy in the light of rising inflation.
“Although we may not get a change in interest rates during this coming meeting, the comments and the voting record will still be instructive about the vote that is currently enveloping the Threadneedle Street.”
Will the mortgage interest rate fall in the longer term?
The news today achieved Halifax its short-term two and three-year fixed rates, while the increasing rates on the longer five-year solutions have led to suggestions from mortgage brokers that lenders expect the interest reductions in the shorter term, but not so sure of how things will go further.
It will add an extra complexity for borrowers Decide between a two -year solution or five years So everyone in this situation is encouraged to seek advice from a mortgage adviser.
Emma Jones, director of Whoushebankenno.co.uk spoke through the newspaper agency. She said: “These prices seem to suggest that the Halifax expects the speed reductions in the short term, but is less certain about the direction of the basic rate in the longer term.
“If you want the pace of the mind in the longer term, you have to pay something more based on these changes. Ultimately, you now come for a two -year solution or a five -year -old on several factors, so it’s important to get advice.
“The rates turn out to be turbulent in an unpredictable market. All eyes are now on the Bank of England assessment decision of tomorrow.”