The rate has stood at its highest level for nearly 16 years for seven consecutive meetings now, and many are wondering when we will finally see the first rate cut.
This week, inflation finally hit the Bank of England’s target for the first time in three years. Prices rose 2% in May from the year before, down from a rise of 2.3% the previous month. However, most experts predicted that this would not be enough to warrant a rate cut this month, and they were proved right. Many are pointing to price rises in the service sector, which remained high in May with an annual increase of 5.7%, as one of the main reasons for this.
The vote share from the nine-member Monetary Policy Committee is considered a clue to how soon we will see a lowering of the Base Rate. The majority voted 7-2 to hold rates unchanged from the last meeting. However, according to BBC News, the committee minutes suggest that the Bank of England has ‘opened the door to cutting interest rates in August’.
Learn More: Explore buy-to-let in Liverpool or get tips on where to invest in property in London with our area-based investment guides.
