The Bank of England is likely to maintain its current interest rates, which are at their highest levels since before the financial crisis, this week. This indicates that the battle against persistent inflation is ongoing, even though there are signs of weakening economic growth. According to financial market pricing, the bank’s Monetary Policy Committee is expected to keep the benchmark rate at 5.25 percent. Approximately 80% of economists surveyed by Reuters believe that interest rates will remain unchanged on Thursday, while the remaining 20% anticipate an increase. The Bank of England is carefully considering signs of a cooling economy while also observing continued rapid increases in both consumer prices and wages.
In October, UK house prices unexpectedly increased by 0.9% on a monthly basis, mainly due to a limited supply of properties for potential buyers. Nationwide’s index reported this data. Robert Gardner, Nationwide’s chief economist, pointed out that despite the monthly increase in October, the housing market remains quite weak. In September, only 43,300 mortgages were approved for house purchases, which is approximately 30% below the monthly average seen in 2019. Additionally, data from the Bank of England on Monday revealed that British lenders approved the fewest home loans since January in September, further indicating a sluggish property market.
