UK homeowners hope Bank of England avoids another rate hike after inflation falls
Homeowners across the U.K. are hoping that the Bank of England will decide to avoid raising interest rates for the first time in nearly two years
LONDON (AP) — Homeowners across the U.K. are hoping that the Bank of England will decide to avoid raising interest rates Thursday for the first time in nearly two years, a decision that would come on the heels of similar action by the U.S. Federal Reserve.
Following Wednesday's news that U.K. inflation fell unexpectedly in August to 6.7%, its lowest level since Russia invaded Ukraine, expectations have grown that the Bank of England will opt to keep its main interest rate unchanged at a 15-year high of 5.25%.
Before the inflation figures were released, most economists thought the central bank would raise its key borrowing rate once again by a quarter of a percentage point to 5.5%. That's because inflation is still way above the bank's target rate of 2% and higher than in any other Group of Seven major economy.
Now, financial markets foresee the decision going either way.
