Estate agents face another potential blow to buyer confidence this week as the Bank of England prepares to increase borrowing costs amid renewed inflation pressures. The pressure on the Bank's Monetary Policy Committee (MPC) has intensified after annual consumer price inflation climbed to 3.5% in September.
Bank of England tipped to raise interest rates for first time in three years
UKPulse Money DeskThe Bank of England is expected to increase borrowing costs from 3.75% to 4% on Thursday, November 5th, amid renewed inflation pressures.
- The Bank of England's Monetary Policy Committee (MPC) is widely expected to raise interest rates for the first time in three years.
- Financial markets are pricing in a quarter-point rise as policymakers attempt to prevent another prolonged period of high inflation.
Why this matters: The expected rate rise could put further pressure on mortgage borrowers and the housing market, making it harder for buyers already struggling to meet affordability requirements.
What this means for you: If you're a mortgage borrower or planning to buy a house, be prepared for potentially higher borrowing costs and reduced purchasing power.