BANK OF ENGLAND EXPECTED TO HOLD INTEREST RATES 

The Bank of England (BoE) is expected to hold interest rates for the third time in a row at 5.25 per cent, following 14 consecutive rises (BBC News). The decision will be published at midday.  

This follows on from the US Federal Reserve holding interest rates yesterday. Financial markets think it’s likely the US will begin cutting interest rates next year (The Times).  

Investors also think the UK may cut interest rates next year, but even though inflation has fallen to 4.6 per cent in the year to October, that is still above the BoE’s two per cent inflation target (Reuters). 

UK SURVEYORS MOST OPTIMISTIC IN ALMOST TWO YEARS

UK surveyors are the most optimistic they’ve been on future house sales in almost two years, according to the Royal Institution of Chartered Surveyors (Bloomberg).  

November marked the first rise in sales expectations since early 2022 as mortgage rates eased (Financial Times). The measure of forecasted sales in the next three months rose to six in November, up from minus 17 in October.  

NEWS IN BRIEF

The Payment Systems Regulator (PSR) has proposed capping EU-UK interchange fees at 0.2 per cent and 0.3 per cent for debit and credit card transactions respectively. Both Mastercard and Visa have strongly criticised the PSR’s proposals, which are now subject to consultation (The Telegraph).   

The UK government has formally backed plans to ban gas and “hydrogen-ready” boilers for newbuild homes in England from 2025, as part of a delayed consultation on low-carbon building standards (Guardian).  

Demand for a four-day week remains steady but fewer employees are expressing a preference for part-time working (The Times).  

The Financial Ombudsman has reported a surge of complaints about car finance and motor insurance (Sky News).