Markets revise down interest rate projections following Government U-turn

Financial markets are now anticipating interest rates of between 5.5% and 5.75% rather next year, rather than the 6% being projected last week.

Earlier this morning Chancellor Kwasi Kwarteng scrapped the planned 45p tax cut for higher earners after markets and his fellow Tory politicians railed against it.

He said: “We are not proceeding with the abolition of the 45p tax rate. We get it, and we have listened.”

Last week mortgage lenders were forced to pull products due to market turmoil following the mini-Budget.

Lenders started to return to market last week with more expected to launch products this week.

The next interest rate decision from the Bank of England is expected in November.

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