Why the Bank of England isn’t lowering rates yet
Spectator (UK)MAY 2024
With many expecting the BoE to remain firm at 5.25%, today's decision is a small win for the property and mortgage markets. With lenders already beginning to bring down prices, the news is reaffirmation to many that things are slowly but surely getting better.
A small reduction in the BoE's interest rate will do next to nothing for millions who have been affected by the cost of living crisis. While wethe UK may be over the worst of the post-pandemic era, and an interest rate cut will certainly be of some help to small groups, the economy irrespectively remains extremely fragile. For many, little will change until economic growth is kickstarted once again.
There is a 50% chance that UK GDP per capita will be less than 50% of that of the world's leading economy by 2033, according to the Metaculus prediction community.