Are we expecting the BOE Base Rate to drop to 3.75% on the 18th September?

BikingBud

IAMIAM said:

Lets hope it drops in August!!!

Let's hope it doesn't.

RelievedSheff

BikingBud said:

IAMIAM said:

Lets hope it drops in August!!!

Let's hope it doesn't.

It won't!!!

Strummer22

RelievedSheff said:

BikingBud said:

IAMIAM said:

Lets hope it drops in August!!!

Let's hope it doesn't.

It won't!!!

It probably will. Three out of nine members voted to reduce at the last meeting. 

Ongoing inflationary pressures will have an effect, but the headline rate can effectively be ignored with well over 1% of the headline figure being due to April's rise. That's 'baked in', as it were, quashing any chance that the annual rate will drop anywhere close to 2% until May 2026 at the earliest.

IAMIAM

Its interesting to read money to the masses. Predicting lowest boe rate of 3.5% end of 2026 and then hovering back up to around 4% long term....I'll look at fixing long term around 2027 in my opinion and let the tracker rate I have ride the reductions

ReadySteadyPop

A cut would indicate a weak economy, but we supposedly need to hike taxes, how is that going to work? 

ReadySteadyPop

IAMIAM said:

Its interesting to read money to the masses. Predicting lowest boe rate of 3.5% end of 2026 and then hovering back up to around 4% long term....I'll look at fixing long term around 2027 in my opinion and let the tracker rate I have ride the reductions

Can`t see "long term" being as low as 4%, that is just what many journalists with large debts are wishing for, the world really has changed in the last few years, we are not going back to the easy credit years that was a once in a lifetime event.

https://www.fool.com/money/banks/articles/could-tariffs-push-interest-rates-higher-heres-what-it-means-for-your-wallet/

I initially thought they might try to cut, but with the need to raise taxes and the tariffs coming thick and fast a cut just sends all the wrong signals to the public and the markets.

Strummer22

ReadySteadyPop said:

IAMIAM said:

Its interesting to read money to the masses. Predicting lowest boe rate of 3.5% end of 2026 and then hovering back up to around 4% long term....I'll look at fixing long term around 2027 in my opinion and let the tracker rate I have ride the reductions

Can`t see "long term" being as low as 4%, that is just what many journalists with large debts are wishing for, the world really has changed in the last few years, we are not going back to the easy credit years that was a once in a lifetime event.

https://www.fool.com/money/banks/articles/could-tariffs-push-interest-rates-higher-heres-what-it-means-for-your-wallet/

I initially thought they might try to cut, but with the need to raise taxes and the tariffs coming thick and fast a cut just sends all the wrong signals to the public and the markets.

Cool, we don't live in the USA though. US Tariffs are less likely to have a purely inflationary effect in the UK. 

IAMIAM

It will drop to 4%. I have noticed MANY lenders reduce rates Monday/Tuesday (usual routine like clockwork)

ReadySteadyPop

Strummer22 said:

ReadySteadyPop said:

IAMIAM said:

Its interesting to read money to the masses. Predicting lowest boe rate of 3.5% end of 2026 and then hovering back up to around 4% long term....I'll look at fixing long term around 2027 in my opinion and let the tracker rate I have ride the reductions

Can`t see "long term" being as low as 4%, that is just what many journalists with large debts are wishing for, the world really has changed in the last few years, we are not going back to the easy credit years that was a once in a lifetime event.

https://www.fool.com/money/banks/articles/could-tariffs-push-interest-rates-higher-heres-what-it-means-for-your-wallet/

I initially thought they might try to cut, but with the need to raise taxes and the tariffs coming thick and fast a cut just sends all the wrong signals to the public and the markets.

Cool, we don't live in the USA though. US Tariffs are less likely to have a purely inflationary effect in the UK. 

https://bmmagazine.co.uk/news/uk-gilt-yields-27-year-high/

It isn`t all about inflation, the market "perception" of the UK is also a risk factor.

ReadySteadyPop

https://www.bbc.co.uk/news/live/cp895dyj046t

They cut far too quickly in my opinion, at some point they will have to raise rates again.