Hopes of interest rate cut grow as inflation eases to 3.2%

20 comments

1. INB4: reMiNdEr thAt This mEaNS pRIcES arE STilL gOinG Up

   Yes, everybody already knows that. Nobody thinks that you are clever for also knowing that.

2. Now that companies have made back their Covid losses!

3. Real wages growing, inflation falling and probably a rate cut or two to come this year. Definitely feels like we left the worst of it a few months ago now.

   Outside chance that a new government inherits a slightly less grim economic situation than they expected and can find some extra cash too.

4. If we had laws to stop some of the hidden charges and rip-offs that have crept in since 2021, the inflation rate could be even lower.

5. Of course they will lower the rates. I just locked in for 2 years

   You’re welcome

6. My wages have risen almost 15k in the last 12 years but I am definitely worse off financially, or so it feels. Some of this is likely because of poor financial decisions on my part but times are now tougher than ever and we have to dip into savings end of each month. Prices are rising and we’re now having to consider making significant cuts like pet insurance. MOT end of this month, I still have an outstanding bill from the garage. I already work full time but looks like I’ll be looking for a weekend job.

7. I wouldn’t put my money on a intrest rate cut or a fairly significant one. the BOE have been pretty adamant on the inflation target. Just because inflation is going down, they don’t want to be premature on any potential inflationary events.

8. In addition to the point that this means prices are still rising, actual deflation has never happened¹, except just after WW2.

   ¹for more than one month, iirc there were single months of -0.1% or so during the 1970s and 2000s financial crises

9. Phone companies: prices to go up 10% + RPI (10.2%). Government : Don’t ask for a pay rise guys.

10. Ffs, inflation has eased BUT what’s worth noting is it was expected to ease further than it actually has.

    Therefore, the hope of more than one interest rate cut this year doesn’t grow – it weakens….

11. Good that prices are finally stabilising somewhat but looking at my mortgage payment now and my income/expenditure for over the last 2 years I don’t think I’ll be any better off for a long while. 

12. Doesn’t really mean much to me at this point. Unless I start getting pay rises in line or above inflation, I’ll still be poorer again this time next year. In fact, will probably give them cover to offer an even more derisory pay deal.

13. “Eases”

    “The high prices are still rising. Just slower”

14. Too late. As well as income and NI we are now paying the ‘greed’ tax which is another 30-40% on fucking everything. They spotted an opportunity in 2021 when everyone was at their lowest and the government could do fuck all about it and exploited exploited exploited.

    Also worth mentioning that the job market is in the toilet for most sectors. Employers also spotted a great opportunity to invite their employees to have no pay rises and offer crappy pay for a lot of stressful and difficult work. Similar jobs in the US are now paying 3-4 times as much as the U.K.

15. Nice to see some positive news. Though we’re not out of the woods yet.

16. RPI of 4.2%, so student loans will be 7.2% from September. Unless private loans fall enough to force a cap.

17. If the fed are hinting at no rate cuts this year will the BOE cut?

18. There’s a lot of copium flying around about interest going down.

    Inflations not at the target amount, interest is **still** lower than the historical average (ignoring the 2008-now period).

    It’s got a long way to go before it goes down – if it even ever does.

19. Sky News is massively jumping the gun here. The gilt markets are indicating the exact opposite. That rate cuts are less likely as a result of this news.

20. Doesnt mean shit interest rates falling. Unfortunately the prices are high now, they will stay that way.