Market estimates for the Bank of England’s bank rate are at their lowest since the mini-budget, which is excellent news for individuals with mortgages.
Market forecasts peaked soon after the mini-budget at 6.1%, but have since dropped to just over 5%.
It was just three weeks ago the then-Chancellor Kwasi Kwarteng unveiled his tax-cutting mini-budget to MPs, which caused economic turmoil in the UK, as the value of the pound plummeted.
Today, Mr Hunt said there “were mistakes” in last month’s announcement, and pointed out some taxes may have to rise and others might not fall as much as planned.
The BoE is due to announce its next decision on interest rates, which will impact household mortgages, on 3 November and many investors think it will either raise them from their current level of 2.25% to 3% or possibly 3.25%, both of which would be much bigger moves than usual.