The UK's base interest rate is set to drop to 4.5% from 4.75%, marking the lowest rate in over 18 months. This decline will likely reduce mortgage rates, providing significant relief for homeowners. As inflation fell unexpectedly to 2.5% in December, there's increasing speculation that further cuts to the base rate could follow, especially given the current economic stagnation. Lower interest rates generally encourage borrowing by making loans more accessible and manageable, thus stimulating economic activity during a period of sluggish growth.
The UK's base interest rate is projected to decrease to its lowest level in 18 months, likely leading to reduced mortgage rates and benefiting homeowners.
Analysts anticipate the Bank of England will lower the base interest rate from 4.75% to 4.5%, which will impact mortgage costs positively.
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