UK Interest Rates Predicted to Grow This Week

The survey on top economists shows that experts are expecting for the Bank of England to lift its interest rates to 0.25% on Thursday, which would likely put pressure towards house hunters. Based on the poll of the Finder.com on Monday, there were nine economists who agreed that the Monetary Policy Committee will increase its rates during the Thursday’s meeting. The personal finance site mentioned that it’s the first time for the unanimous votes by experts in terms of the interest rates direction since 2007, while they have various responses about the effect of the predicted hike and further economic indicators.

Moreover, the economic figures indicate increasing wages and lesser unemployment rate influences the projected percentage hikes. Nevertheless, homebuyers anticipate for a bounce in their budgets due to wage growth offset led by the mounting costs on mortgages. One-third of the polled economists expressed pessimism towards housing affordability.

Also on Monday, the economic research consultancy Pantheon Macroeconomics further projected a raise on Thursday and stated that there could possibly rate hikes in 2019.