In a further move to support economic momentum, the Bank of England has reduced the Base Rate to 4%, following a 0.25 percentage point cut by the Monetary Policy Committee. This marks the third adjustment this year, underscoring a continued strategy to address economic pressures while navigating persistent inflation, which remains above the 2% benchmark.
While some may view the decision as bold in light of inflationary concerns, the central bank’s position reflects growing confidence in the UK’s economic resilience. Market consensus suggests additional rate cuts may follow before the close of 2025.
For the Prime Central London property sector, these developments are significant. Lower borrowing costs may help unlock movement at the upper end of the market, offering increased flexibility for both domestic and international buyers.
