Bank of England Likely to Maintain Interest Rates

Mortgage rates have stabilized this week following a modest decline on Monday, with expectations of increased volatility after the Federal Reserve's upcoming rate announcement. In the UK, wage growth has risen to 5.2%, the first increase in over a year, which reinforces expectations that the Bank of England will maintain interest rates at 4.75% during its upcoming meeting. Economists predict that the central bank will adopt a cautious approach to rate cuts due to ongoing inflation pressures and the impact of a recent budget that increased taxes significantly. The rise in wages, particularly in the private sector, raises concerns about potential inflationary effects if companies adjust prices accordingly. There are indications that the UK job market is weakening, with a decline in payroll numbers, which may influence future economic policies. Overall, analysts suggest that while rate cuts may be on the horizon, they are likely to be gradual, with the Bank of England focusing on maintaining monetary stability.