• House prices rise 0.4% in July
• Bank of England expected to cut interest rates to 4%
• Nikkei hits high, dollar weakens
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House prices rise 0.4% in July
House prices rose again last month as the buyers continued to return to the market after a slowdown in demand following the end of the stamp duty holiday, data from the mortgage lender Halifax showed.
House prices rose by 0.4 per cent in July, the biggest monthly increase since the start of this year. The average house price is now £298,237, 2.4 per cent higher than a year ago.
Amanda Bryden, head of mortgages at Halifax, said: “Challenges remain for those looking to move up or onto the property ladder. But with mortgage rates continuing to ease and wages still rising, the picture on affordability is gradually improving.”
She said the second half of the year will see a notable rise in homeowners coming to the end of fixed-rate deals. “While most borrowers coming to the end of five-year fixed-rate mortgage deals will see their monthly repayments rise. Those coming off a two-year fixed-rate are very likely to see their monthly payments come down.”
Bank of England expected to cut interest rates
The central bank’s monetary policy committee (MPC) is expected to cut interest rates by a quarter-point to 4 per cent at midday. However, the committee is once again expected to be split. Jack Barnett has more on why economists are forecasting the reduction in borrowing costs here.
The decision is likely to weigh on investors this morning, with the FTSE 100 forecast around 8 points lower when trading begins. Last night the index closed up 0.24 per cent, or 21.56 points, at a new high 9,164.30.
Asian markets rise, dollar weakens
South Korea’s Kospi rose 0.6 per cent this morning, with indices in China, Japan, and Taiwan also higher. Markets in India were lower.
AP
Asian stock markets rose and Japanese shares hit a record high this morning, lifted by tech-led gains on Wall Street, upbeat earnings, growing expectations of US rate cuts and the prospect of a meeting between President Trump and President Putin over the war in Ukraine.
Markets seemed to shake off Trump’s latest tariff moves, including an additional 25 per cent tariff on India over purchases of Russian oil. Trump’s threat of a 100 per cent tariff on chips and semiconductors was also taken in stride, as the president promised to exempt companies such as Apple that move production back to the United States.
The dollar weakened against a basket of currencies on hopes of US rate cuts and concerns about Trump’s attempts to interfere with key institutions such as the Fed and the Bureau of Labor Statistics.