Interest rates, retirement, digital detox and luxury homes

One story dominates the financial news today: the prospect of the Bank of England cutting the base rate for the first time in seven years. It is widely expected that interest rates will drop to 0.25 per cent at lunchtime. The base rate has stayed at 0.5 per cent since March 2009. Last month the Bank’s Monetary Policy Committee voted to hold interest rates, despite economists predicting a cut. While a reduction is by no means a sure thing, there is increasing pressure on the Bank to act after recent poor economic data. ‘Economic data since the referendum have weakened sharply. There is a real need for more stimulus now,’ said Samuel Tombs, chief UK economist at Pantheon Macroeconomics. The Bank of England also releases the quarterly Inflation Report at 12pm. Meanwhile, The Times reports that savers appear to be hoarding cash at the fastest pace since the financial crisis over fears that the Bank of England may eventually cut interest rates into negative territory.