UK homeowners hope Bank of England avoids another rate hike after inflation falls

By PAN PYLAS
Associated Press

LONDON (AP) — Homeowners across the U.K. are hoping that the Bank of England will decide to avoid raising interest rates for the first time in nearly two years. Following news that inflation fell unexpectedly in August to its lowest level since Russia invaded Ukraine, expectations have grown that the central bank will opt Thursday to keep its main interest rate unchanged. Before the inflation figure of 6.7% was released Wednesday, most economists thought the bank would raise its main borrowing rate once again by a quarter of a percentage point. That’s because inflation is still way above the bank’s target of 2%. Now, financial markets foresee the decision going either way.