Bank of England cuts rates again to boost economy
The Bank of England is dropping its main interest rate by 0.25% to 4% this Thursday—its fifth cut since last year.
The goal? To give some relief to people and businesses feeling squeezed as the UK economy slows down and more folks struggle to find jobs.
Homeowners and 1st-time buyers will benefit
If you have a mortgage or are hoping to buy your first home, there's good news: lower rates mean average homeowners are saving nearly £1,000 a year, and first-time buyers about £100 a month.
Still, prices haven't cooled off much—UK inflation was 3.6% in June, which is higher than the Bank's target.
Divided opinions on the rate cut
The Bank's decision-makers aren't all on the same page.
Most—including Governor Andrew Bailey—think a small cut is enough for now, but some want bigger changes because of job losses, while others worry that cutting too much could keep prices high.
Their updated forecasts will show just how tricky balancing growth and inflation has become right now.