- The Bank of England Keeps Interest Rates Unchanged
- National Housing Prices Slowly Rise, Down 3.3% Year-on-Year Compared to Last October
- With Christmas Approaching, Anticipated Reduced Spending to Alleviate Financial Pressure
- Continuing Controversy Surrounds Tourism Tax, Business Sector Calls for Its Repeal
Interest Rates Unchanged
The Bank of England decided this Thursday to keep the base interest rate unchanged at 5.25%.
Since the pandemic, the UK has been consistently raising benchmark interest rates to combat inflation.
As of now, the inflation rate remains at 6.7%, a significant distance from the government’s target of 2%.
Economists also suggest that the inflation rate is unlikely to see significant fluctuations in the short term.
National Housing Prices Slowly Rise
A report from the National Federation of Builders reveals that the average house price for October was around £260,000.
This marks a 0.9% increase compared to September but still represents a 0.9% decrease from October last year.
Experts predict that this trend may persist over the coming quarters.
Especially as sellers asking for house prices decrease in light of the current weakened consumer confidence.
The Ongoing Cost of Living Crisis Affects Christmas Spending
With winter approaching, the arrival of Christmas is on the horizon, and some households have already begun preparations for holiday decorations.
Nonetheless, the majority of families are impacted by the ongoing cost of living crisis, resulting in more frugal purchases.
Many are choosing budget-friendly options, such as DIY candles and soaps, to express their holiday sentiments.
Furthermore, due to rising postage prices, sending Christmas cards has become less common.
More families are trying energy-efficient light bulbs for outdoor decorations to reduce energy bills.
Controversial UK Tourism Tax
Previously, we discussed Manchester becoming the first city in the UK to impose a tourism tax.
However, this tax is seen as a hindrance to both the tourism industry and the retail sector, discouraging customers from visiting and spending.
With Christmas approaching, the business sector once again calls on the government to reinstate tax-free shopping.