The Bank of England. Credit: Shutterstock, MisterVlad
The United Kingdom has experienced a drop in inflation, falling below 2 per cent in September for the first time in three-and-a-half years.
The Bank of England is now further pressured to cut interest rates at its meeting next month. The drop in inflation has been attributed by the Office for National Statistics (ONS) to lower airfares and petrol prices. However, food prices remain high, and the cost of basic groceries continues to place pressure on households, particularly low-income families during the cost-of-living crisis.
Chief secretary to the Treasury, Darren Jones, said the drop “will be welcome news for millions of families.” He then went on to say, “However, there is still more to do to protect working people, which is why we are focused on bringing back growth and restoring economic stability to deliver on the promise of change.”
What will happen to interest rates in the UK?
As reported by The Guardian, ‘policymakers at the Bank of England are expected to cut interest rates by a quarter of a percentage point when they meet in November to 4.75%.’
UK interest and its impact on expats in Europe
For expats with financial ties to the UK, this ongoing situation could be of concern. Property investments, mortgage repayments, and savings accounts tied to UK interest rates are directly affected. Also, inflation trends in the UK can sometimes influence broader European markets, despite Brexit.
