Surveyors report market momentum

BBC reports on improvements in interest in the UK housing market.

Interest from home-buyers is starting to gain “real momentum”, although sales remain low, UK surveyors say.

The housing market is a traditional indicator of the strength of the UK economy. Once people start buying houses, this can kick start the economy, as people start to buy new things for their new homes.

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Bank of England hints at further rate cuts

BBC reports on the Bank of England’s deliberations about cutting interest rates.

Expectations of another rate cut have risen after the release of minutes from the Bank of England meeting at which rates were lowered from 4.5% to 3%.

The article continues.

“It’s confirming that we’re going to see more rate cuts from the Bank of England, and more aggressive rate cuts,” said Audrey Childe-Freeman from Brown Brothers Harriman.

The Bank of England is cutting interest rates to both ensure to stop inflation falling too far below its target next year and to encourage consumer spending.

Bank keeps UK interest rate at 5%

BBC reports

The Bank of England has kept interest rates on hold at 5% for a fifth month as it struggles to deal with a slowing economy and soaring inflation.

Interest rates steady at 5%

BBC reports on the decision by the Bank of England to keep interest rates at 5%.

The majority of Bank of England policymakers voted to keep rates steady at 5% at its July meeting, but one voted for a cut and another for a rise.

The surprise split underscores the challenge faced by the Bank’s Monetary Policy Committee (MPC) as it balances slowing growth with rising inflation.

Most businesses would have been looking for a cut in interest rates as rising food and fuel costs eat into consumers’ disposable income. Cutting interest rates would reduce credit and mortgage costs. Cutting interest rates would also reduce businesses financial costs if they had been borrowing.

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