In a surprising turn of events, the latest inflation figures reveal a slowdown in the rise of consumer prices. According to the Office for National Statistics (ONS), The Consumer Prices Index (CPI) sat at 4.6% in October, down from 6.7% in September.
The Bank of England has just announced that UK interest rates have been left unchanged at 5.25%. The decision comes a day after figures revealed an unexpected slowdown in UK price rises in August. The Bank had previously raised rates 14 times in a row to tame inflation, leading to increases in mortgage payments but also higher savings rates. With a slim 5-4 vote on maintaining interest rates at 5.25%, it may seem likely that we are beginning to head in the right direction.
If you’re a homeowner, today’s announcement means mortgage rates will remain unchanged, as will the accessibility of borrowing. If, however, you’re a property investor, the current high rate still puts pressure on the property market and has the ability to create better opportunities for those looking to secure property from more motivated sellers.
Chris Kirkwood, Sourced’s Managing Director says:
“Although maintaining rates is a change in the behaviour of the Bank of England in comparison to the previous 14 months, this shouldn’t be seen as an indication that the economy is out of the woods and on the way to recovery. The change of inflation is on a knife edge and could easily go the other way next month. Although good news, the market won’t change significantly till we see a consistent trend in inflation.”
The next time the Bank of England will review interest rates will be 2nd November.
If you would like to learn more about how you could potentially generate attractive returns through UK property backed peer-to-peer lending with Sourced Capital, speak to our team today!
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