The most anticipated inflation increase yesterday in April has led investors to bet on the Bank of England that slows their gradual rhythm of interest rate cuts.
The annual inflation rate reached 3.5% in April, compared to 2.6% in March, since the increase in the cost of household invoices increases the inflation of the United Kingdom.
Water, gas and electricity prices increased on April 1, with a large number of other invoices, pushing inflation beyond the objective of the Bank of England or 2%.
Two interest rate cuts were expected this year, but some economists think that April inflation figure means that there is more likely to only one, and this could increase the indebtedness rates of the mortgage, according to some analysts.
Peter Stimson, mortgage director at the lender Mpowered, commented: “We expected a jump, but what we received, both in the title and in central inflation.
“The increase in inflationary pressure gained only translates into a slowdown in the cuts of the base rate. We are in the territory of ‘Brake On’.
“The perspective of the Bank of England that reduces its base rate again in June has changed from thin to non -existent.
“With the economy, beginning to expand to a decent clip, the bank is now less concerned with stimulating growth. Control inflation under control and force it to return to its IPC goal of 2%, once it is once the highest priority of the bank.
“He will have his work trimmed, since there are some worrying trends under the surface of today’s inflation numbers. And although several temporal factors make the April peak look privilegedly, no explanation of the Shourd for the target for the heel.
“The Swaps market, which determines the interest rates of the mortgage, had already stared at a jump in inflation today and a delay in the following base rate reduction.
“But with the inflationary problem of Great Britain with such revenge, the probabilities of a garbage rate in August have also extended. The path to lower interest rates will be longer and slower than thought as recently as only a few weeks ago.
“For anyone who plans to buy their first home or rejtogage this summer, today’s inflation data is a blow.
“For now, the mortgage rates have fallen as far as they can and we can even see them crawl over the next weeks, the lenders emphasize their prices in response to the increase in exchange rates.”
Also reflected on the hyke in inflation, Nathan Emerson, Ceo at Propertymark, commented: “The Numbers Will Likely Come As A Disappointment To Many Across The Country. It Remain Vital That The UK Economy Delivel’s Bench Or Echget inflation inflation inflation inflation inflation inflation inflation inflation inflation inflation inflation inflation inflation inflation inflation inflation Inflation Inflation Inflation Inflation Inflation Inflation Inflation Positive inflation.
“Housing plays a central role in the impulse of general growth in the United Kingdom, and with the summer months occupied for the real estate market, the impulse is likely to continue during this period, despite the economic ones during the first quarter of 2025.
“The increase in inflation can deter England from abandoning interest rates on June 19; however, when it is the right time, we hope to see them fall and more competitive mortar deals with the spectrum of loans.”
