UK interest rate rise may come sooner than expected

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UK interest rate rises may come sooner than previously expected

Andrew Bailey, the Bank of England (BoE) governor emphasised this week that the bank will ‘have to act’ to quell inflationary pressures. Swap market trading implies that a first rise is expected at the bank’s December meeting, taking the rate from 0.1% to 0.25%. The latest inflation data for the UK will be released on Wednesday.

Next week: a budget, spending review and OBR forecast update

Next Wednesday’s spending review promises further detail on ‘levelling up’ and R&D spending, amongst others, both of which have the potential for meaningful and positive real estate implications. A significant amount of commentary has been pre-released, and implies that while day to day spending will continue to increase, so will the overall level of taxation on the economy. With the review coming days before the UN’s COP26 summit in Glasgow, many will be on the lookout for the announcement of further ‘green’ measures.

Global investors announce £10bn of infrastructure pledges at UK summit

Pledges amounting to £10 billion have been announced into UK infrastructure, technology and energy sectors. Most sources of investment are from overseas, with a third of all investment coming from the US. Current pledges feature plans for offshore wind power development, warehouse development and decarbonisation technology. If delivered, the plans could lead to circa 30,000 new jobs across the UK.

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