Bank of England Interest Rate Decision December 2024 - My Take

The Bank of England now has inflation a shade above its 2% target but its policy remains very restrictive with Bank Rate at 4.75%. The consensus is that the rate will not be changed at this Monetary Policy Committee (MPC) meeting. But UK growth is stalling, so will the Bank of England do as markets expect or cut again? Hear our summary of what the MPC says and does and what it means for investors and homeowners in the UK.

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DISCLAIMER
All information is given for educational purposes and is not financial advice. Ramin does not provide recommendations and is not responsible for investment actions taken by viewers. Figures that are quoted refer to the past and past performance is not a reliable indicator of future results.

[DanRobards]

Love the open shirt and blazer for the thumbnail. Very Bradley Walsh 😂

[TheLinkedList]

I think we've reached the point where inflation is being pushed upwards from high interest rates. Businesses are increasing prices in relation to increased taxes AND increased cost in debt payments. Rates being higher is a poison as much as it is a medicine

[SanchoRocha]

Hospitality is suffering…down 60% year on year…and about 30% higher costs in produce from pre cvd

[dhunt]

Hi Ramin, you mention property as a poor hedge, but it is easy to leverage and you also get rental income, so perhaps total return is more competitive?

[robertknightbruce]

Do you think a 2 year fix or 2 year tracker is more attractive heading into 2025?

[Ivan-fsgo]

Logically there is only one reason for the high interest rates - corruption in the public sector. Public entities must be banned borrowing money and the central bank must be banned to print money without referendum.

[jaaguitar]

What period is wage growth covering? Had the effect of the NI rise started coming into those stats yet?

[SphericalHang]

You still get tax relief when paying into SIPPS so these still beat ISAs.

[Andrew-dpkf]

We need the (painful) deflationary shock that comes with a recession. Like a drunk with a hangover we’re still trying to convince ourselves to have that cathartic puke.

[Marenqo]

As an academic in a university, my wages have stagnated ever since 2008.

[jabberwockytdi]

Elephant in room mentioned for once, Brexit, UK stocks are still cheap for reasons, Brexit being one of the biggest, and the UK economy is going nowhere as things stand.

[voodoomotion]

Any chance Reform can revert IHT on private pensions, or is it likely to be a permanent change? We dont have a huge pot but i can imagine that, for those who do, it's forcing them to maximise drawdowns at 20% to gift away

[Duncan-Bizkitts]

1+3=10 Dianne Abbott for Governor of the BOE…..hoorah

[jaxcs]

OOH inflation is at a record high, one big factor is high interest rates. Increasing cost on car purchases, credit cards, loans, mortgages. In canada lower interest rates is now driving down inflation.