The Bank of England could make the first cut to UK interest rates in more than seven years at lunchtime today. The governor Mark Carney has previously indicated that the Monetary Policy Committee would vote to cut rates in July or August.
The probable reduction from 0.5 per cent to 0.25 per cent is intended to boost the UK economy in the wake of the Brexit vote. Although a cut is not certain, financial markets put the probability at about 80 per cent. The FTSE 100 opened higher ahead of the expected rate cut. Shortly after opening the share index was 0.82 per cent or 54.77 points higher at 6,725.28. The FTSE 250 share index, which some regard as a more accurate reflection of UK business, was up 0.64 per cent or 108 points at 16,859. Meanwhile, Philip Hammond, the new Chancellor of the Exchequer, has ruled out an emergency Budget following the UK’s vote to leave the EU. The Chancellor, appointed by new Prime Minister Theresa May yesterday, said he would monitor the economic situation over the summer before setting out spending targets as normal in the autumn statement. HousingThe supply of homes on the UK market fell at its sharpest rate to date and buyer demand hit an eight-year low as Brexit was confirmed, surveyors say.
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