Today’s interest rate cut, from 4.5% to 3%, marks only the early stages of a phase of aggressive monetary easing which will ultimately take base rates to an all-time low of 1%. Mortgage interest rates are also heading much lower, but they will not fall as far. Over the next twelve months, expect average mortgage interest rates for new borrowers to fall to 3%.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.