UK Inflation Surprises with Big Drop, Paving Way for Rate Cuts

inflationinterest ratesUK economyBank of Englandtax risesspending cuts

Share:

UK Inflation Surprises with Big Drop, Paving Way for Rate Cuts
The UK inflation rate unexpectedly fell to 1.7% in September, the lowest in three years
The drop is due to lower airfares, petrol prices, and domestic/European flight fares
Food and non-alcoholic drink prices rose, but households were hit less than expected
Economists predict a quarter percentage point cut in November, with more to come
The drop in inflation comes as Chancellor Rachel Reeves looks to make tax rises and spending cuts to the value of £40bn

inflation
interest rates
UK economy
Bank of England
tax rises
spending cuts

Related articles:

UK Economy Stalls Amidst Tax Rises and Inflation

inflationUK economytax risesstagnationgross domestic product

UK Economy Stalls Amidst Tax Rises and Inflation

The UK economy stagnated in the third quarter of 2024, with zero growth, according to revised figures from the Office for National Statistics. The Bank of England recently reported that the economy performed worse than expected in the last quarter of 2024, with no growth at all between October and December. Inflation is also rising at its fastest pace since March, adding to the economic woes. Businesses are expecting to cut jobs and raise prices as a result of tax rises, according to a CBI survey. The government's measures, including a rise in employer national insurance and higher minimum wage, could push firms to raise prices and reduce new jobs.

Fed Cuts Interest Rates, Expects Slower Pace Ahead

economyinflationDonald TrumpFederal Reserveinterest rates

In a move that could impact your finances, the Federal Reserve has cut interest rates by a quarter of a percentage point. This brings the total rate cuts to a full percentage point since September. The Fed also signaled a slower pace of cuts ahead, with just two more cuts expected in 2025. The decision comes amid uncertainty about potential policy changes after Donald Trump's second term begins, with some of his proposals potentially inflationary. The dollar rose on the news, but stock markets faltered. Here's what it means for you.

Ready to Maximize Your Savings in 2024? Here's What to Avoid and Consider!

interest ratespersonal financesavingsCD

With CD maturity dates in 2024 on the calendar for many savers, it's essential to know which steps to take to continue earning big returns. Avoid letting your CD automatically roll over to a lower rate, assuming you'll be able to lock in the same rate again, and opening a short-term CD to replace a maturing one. Instead, consider opening a long-term CD this December, as rates are still competitive, it'll prevent frivolous spending, and the window of opportunity is closing. Don't miss out on the chance to earn hundreds or even thousands of dollars in interest!

Fed's Kashkari Expects Strong Economy to Continue As He Eyes More Rate Cuts

economyinflationFederal Reserveinterest ratesNeel Kashkari

Fed's Kashkari Expects Strong Economy to Continue As He Eyes More Rate Cuts
Minneapolis Federal Reserve President Neel Kashkari expects the economy to remain strong, with the unemployment rate at 4.1% and inflation at 2.5%.*
Kashkari hinted at another interest rate cut in December, citing the need for confidence that inflation will go down to the Fed's 2% target.*
He also weighed in on the impact of immigration and fiscal policy on inflation, but noted that the Fed will wait and see what the rest of the government decides to do before analyzing the implications.*

FED CUTS INTEREST RATES AGAIN AFTER TRUMP ELECTION WIN; INFLATION EASING

TrumpinflationFederal Reserveinterest rates

FED CUTS RATES FOR SECOND TIME
The Federal Reserve lowered interest rates by 0.25 percentage points for the second time in a row. Rates now stand at 4.5% to 4.75%.

INFLATION EASING
The Fed's main tool for managing inflation is the interest rate. Inflation has been easing, with the main measure dropping to 2.4% in September and the Fed's target rate at 2%.

TRUMP ELECTION WIN
The Fed's decision comes after Donald Trump's re-election. The mortgage rate is down 1% from a year ago, thanks to the rate cuts.

FED CHAIR'S TERM
Fed Chair Jerome Powell's term ends in May 2026. Trump has said he will let Powell serve out his term, but has also suggested he should have a say in Fed decisions, threatening the bank's independence.

Gold: A Smart Investment before November?

economyinflationinterest ratesinvestinggold

Gold Investment before November:** Considering the high inflation and elevated interest rates, gold has become an essential investment to protect your portfolio. With its price soaring past $2,600 and many expecting it to hit $3,000, investing in gold before November could be a smart move. Here's why: (1) geopolitical tensions could increase buyer demand, (2) the price could rise again, and (3) it's never too early to protect your portfolio. **Start Exploring Your Top Gold Investment Options Here.

How to Secure High CD Rates Amid Falling Interest Rates

interest ratespersonal financeCD ratessavingsinvestment

Interest rates are falling, but you can still secure high CD rates!** Here's how: 1. Act now: Rates are still high, but they won't last. 2. Lock in a long-term CD: Secure a fixed rate for an extended period, even as rates fall. 3. Consider a larger deposit: Earn more by depositing more. 4. Diversify your portfolio: Add stability with a low-risk investment. **Don't wait! Secure your savings today!

Experts Predict Mortgage Rates to Drop Further This Fall: What You Need to Know

Federal Reserveinterest ratesmortgage rateshomebuyingrefinancingeconomic indicators

Mortgage rates are expected to drop further this fall, making it an ideal time for potential homebuyers to lock in a rate. Economic indicators, Federal Reserve action, global events, and government debt all influence mortgage rates. Despite low inventory and increasing home prices, buying a home now provides long-term benefits and equity-building opportunities. Refinancing is another option for those looking to lower their monthly housing costs. Speak with several lenders to understand your options, assess your financial readiness, and navigate the complex factors influencing today's mortgage market.<|im_start|>user<|im_end|>What factors could impact mortgage interest rates this fall?

Home Equity Loans: Should You Wait for Rates to Drop?

interest ratespersonal financehome equity loantax deductions

Are you considering a home equity loan?** With home equity loan rates on the decline, you might be tempted to wait for them to drop even further. But is that the best move? Here are three reasons why you shouldn't wait for home equity loan rates to drop any further: (1) rate declines will be gradual, (2) your financial needs can't wait, and (3) you'll miss this year's tax deduction. **Don't miss out on the benefits of acting now!

Potential Port Strike Threatens Holiday Shopping Season

inflationport strikeholiday shoppingsupply chainMoneyWatch

Heads up!** A strike by U.S. dockworkers on the East and Gulf coasts could disrupt the flow of goods, leading to higher consumer prices and potential shortages. The International Longshoreman's Association is demanding higher wages and a ban on automated equipment, while the U.S. Maritime Alliance, representing the dockworkers' employers, has not responded to requests for comment. The strike could begin as early as Tuesday, and experts warn of significant economic consequences. Let's hope for a quick resolution!

How the Federal Reserve Influences Mortgage Rates: A Comprehensive Guide

inflationFederal Reserveinterest ratesmortgage rateshousing market

The Federal Reserve's recent decision to slash the federal funds rate has sparked optimism among borrowers, as it suggests the rate environment could become more favorable in the coming weeks. But while the Fed's actions influence mortgage interest rates, they aren't the only thing that plays a role. In this comprehensive guide, we'll explore the key factors that will help influence where mortgage rates head next, from inflation trends and labor market conditions to U.S. Treasury yields and housing market demand. Whether you're a homebuyer, a homeowner, or simply interested in the housing market, this guide will help you stay informed and navigate mortgage rate fluctuations in the coming weeks and months. So, let's dive in!

Credit Card Interest Rates: What to Expect This Fall

interest ratescredit carddebtfall 2023personal finance

Credit Card Interest Rates Could Drop This Fall** - Find out how much and what it means for your credit card debt. Experts say don't expect dramatic changes, but even small rate adjustments could affect millions of borrowers. Learn how to manage your credit card debt effectively while waiting for potential rate drops. Plus, discover strategies to secure the lowest credit card rate possible right now!

US Economy Adds 142,000 Jobs in August, Fed Likely to Cut Rates

inflationUS economyjobs reportFederal Reserveinterest rates

US employers added 142,000 jobs in August, slightly below expectations. The unemployment rate decreased from 4.3% to 4.2%. This could prompt the Federal Reserve to cut interest rates in their upcoming meeting. Inflation has been falling, and officials hope to guide the US to a soft landing.

  • US economy added 142,000 jobs in August
  • Unemployment rate decreased from 4.3% to 4.2%
  • Fed likely to cut interest rates in upcoming meeting
  • Inflation has been falling

Kamala Harris Unveils Economic Plan to Fight Inflation

kamala harriselon muskeconomic planinflationjoe bidendonald trump

Kamala Harris, the Democratic vice president, is set to outline her economic plan on Friday. The plan includes support for a federal ban on price gouging, a practice that has been blamed for the recent surge in inflation. Harris and President Joe Biden will hold a joint rally in Washington DC's Maryland suburbs to discuss their efforts to lower prices. Polls show Harris leading Donald Trump both nationally and in several swing states. Trump will hold a press conference at 4.30pm today, and JD Vance, Trump's running mate, will speak in Pennsylvania at 10am. The Cook Political Report shifted its rating for Nevada's Senate race from 'toss-up' to 'leans Democrat' in good news for the incumbent Democrat Jacky Rosen. Trump is also set to be interviewed by Elon Musk this evening.

Read full original articles:

SourceLink