Since the Bank of England decided not to change rates right now, consumers hoping for a drop in the rates for a secured loan UK will have to wait a bit longer. A new cut for secured loan UK rates is expected to take place in June, provided that inflation does not preempt this decision. Experts are encouraging consumers that need a secured loan UK to wait for the drop.“We think that inflation concerns will trump at May’s meeting, meaning that rates stay at five percent,” said Capital Economics analyst Vicky Redwood. “However, we should only have to wait until June for another cut.”“Recent weak data and survey evidence relating to consumer confidence, retail sales, the housing market and manufacturing activity heightens concern that the UK economic downturn is deepening and adds to the pressure on the Bank of England to quickly cut interest rates again despite current elevated inflation levels and risks,” said Global Insight economist Howard Archer.“We are admittedly a little rattled by the extent of the bad news on the housing market recently and also a relatively soft 0.4-percent rise in GDP in the first quarter,” Investec analyst Philip Shaw said. “It does seem likely that the MPC will ease again and our forecast of a 25 basis-point cut in June, followed by a pause, is still pencilled in.”
Related reading: Secured Loan Rate UK
Comment on this article