Bank of England will be ‘cautious’ over interest rates ahead of ‘aggressive’ moves later in the year

The Bank of England will remain ‘cautious’ as the central bank meets today to discuss interest rates.

The central bank cut rates from 5.25% in August, its first reduction since 2020, but experts believe they may hold rates this month and ‘cut more aggressively’ later in the year.

A spokesperson from industry data platform Stocklytics said the above-expected cut from the US Federal Reserve on Wednesday could give the bank some confidence, but members will still be ‘cautious’.

The announcement will be a key moment for homeowners as mortgage repayments continue to rise any announcement on reducing interest rates will have a positive impact on homeowners and first-time buyers.

A spokesperson from Stocklytics said, “The US Federal Reserve’s above-expected rate cut of 0.5% last night may fill some with confidence the Bank of England may follow, but most experts agree the UK’s central bank will be more cautious than its US counterpart. However, this may mean the Bank of England will be able to cut the rate more aggressively later in the year. But borrowers will want security as soon as possible, especially ahead of the expensive Christmas period.”

“No one will be looking at the Bank of England today with more interest than homeowners. With the average mortgage repayment increasing between £500-£1000 in 2024 alone, anything that brings down interest rates will have a positive impact on first time buyers and existing homeowners.”