Mortgage blow as rising rail and hotel costs make June rate cut odds ‘slimmer’

hoping for lower payments this summer have been dealt a blow, as the chance of an interest rate cut in June looks “slimmer” due to high levels of services inflation.by slightly less than expected in official figures released on Wednesday – from 3.4 to 3.2 per cent – but services inflation – which measures the rate of price increases in sectors including hospitality and travel – barely fell at all, and economists have said this will be of particular concern.

Sanjay Raja, chief UK economist at Deutsche Bank Research said the stronger than expected services inflation figure was “led in large part by stronger increases in rail fares, communication prices, and accommodation prices.” Rates can typically be dropped as inflation goes down, so a higher-than-expected reading reduces the chances of that happening in the near future.

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Source: The Yorkshire Post - 🏆 39. / 66 Read more »