Interest rate cuts 2024

It's widely believed that interest rates have reached their peak and will gradually fall throughout 2024. With Rishi Sunak announcing a snap general election, to be held on 4th July, it's unlikely that a rate cut will be announced at the 20th June MPC meeting. Since the bank became independent, it has never reduced interest rates during a general election campaign

It's possible that rates could start to fall when the Bank of England next meets after the election, 1 August, but most analysts believe 19th September will be the date that the UK central bank will announce the first base rate cut since March 2020.

Although inflation has fallen substantially since a peak of 11% in 2022, it is still above the target rate of 2%. Stronger economic growth and a new government could limit future cuts to base rate and it is certain that we will never see sub 1% rates ever again.