Insider's Chantelle Dietz discusses today's Interest Rate Cut news with Stephen Farrell
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00:00Hello, I'm Stephen Farrell and I'm Chantelle Dietz. So Chantelle, we just had the
00:04announcement from the Bank of England on interest rates. What's been announced?
00:07Well, the Bank of England have decided to hold rates at 5% this time. The Monetary
00:12Policy Committee voted 8 to 1, so quite high majority, to keep the rate
00:17unchanged. The decision was based on slower economic growth and inflation
00:22being slightly above the target. We're currently at 2.2% and the target is 2%.
00:26And so what's that likely to mean for businesses? Well, borrowers were probably
00:31hoping for another cut this time, following August's cut, but since then
00:36mortgage rates have been decreasing and the range of products has been
00:40improving as well, so that's led to an improved sentiment in the market and
00:45developers are becoming more active, more home buyers are coming into the market.
00:49So I think today's announcement isn't likely to dent that growing market
00:54positivity. Oh, that's good to hear. And when can we expect the next announcement?
00:59The next announcement is on the 7th of November, so after the budget, so they'll
01:03meet again then and economists are anticipating that there might be another
01:08rate cut then, but it all depends obviously on the inflation trends.
01:13Great. Well, thank you for watching and we'll see you again soon.