Experts are currently split on when the first interest rate cut will occur, with some predicting June, August, September, or potentially even later. In light of this uncertainty, analysts have shared their perspectives on the matter, along with other updates in the world of consumer and personal finance.
For those interested in staying informed, the latest episode of the Ian King Business Podcast is now available to listen to as you read through the following news items.
One potential factor contributing to the debate over the timing of the rate cut is the recent increase in inflation, which rose to 2.1% in May. This is above the Bank of England’s target of 2%, and some experts believe that this may delay the rate cut until September.
However, others argue that the economic slowdown and ongoing Brexit uncertainty may prompt a rate cut as early as June or August. This could provide a much-needed boost to the UK economy and alleviate the pressure on consumers and businesses.
In other news, it has been reported that UK households are facing a sharp increase in the cost of credit, with the average interest rate on credit cards reaching a record high of 24.7%. This is a concerning trend, as it could further strain the already tight budgets of many individuals and families.
On a more positive note, there has been an increase in the number of first-time buyers entering the UK housing market, with a 7% rise in May compared to the same period last year. This is likely due to the combination of falling house prices and the government’s Help to Buy scheme.
In the world of personal finance, the Financial Conduct Authority has announced new measures to protect consumers from high-risk investments. This includes a ban on the marketing of mini-bonds to retail customers, as well as stricter rules for peer-to-peer lending platforms.
For more insights and updates on business and finance, be sure to tune in to the Ian King Business Podcast, available on all major podcast platforms.
