Central bank in the UK maintains interest rates as forecasted
In a significant move aimed at boosting economic growth, the central bank announced a reduction in mortgage rates for the first time since the great inflation wave. The decision, made during the August 2024 meeting, marked a shift in monetary policy after several years of tightening. At the meeting, seven out of the nine members of the Monetary Policy Committee voted in favour of the decision. Two members advocated for a 0.25 percentage point cut in mortgage rates, a move that was eventually adopted by the majority. The central bank president, Jerome Powell, led the charge, lowering mortgage rates by 0.25 percentage points in August 2024 and a total of 1.25 percentage points by November 2024. This decision was a response to growing concerns about the economic slowdown and the need to stimulate growth. The reduction in mortgage rates was welcomed by businesses and consumers alike, as it is expected to make borrowing cheaper and encourage spending. This, in turn, could help to stimulate economic activity and support recovery. Since the mortgage rate cut in August 2024, the total reduction has been 1.25 points. This marks a significant shift in monetary policy and could have far-reaching implications for the economy. The central bank's decision to cut mortgage rates is a sign of its commitment to supporting economic growth and stability. As the economic landscape continues to evolve, it will be interesting to see how this decision unfolds and what further moves the central bank may take.
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