UK construction activity shrinks by most in five years as housebuilding falls – business live

Britain’s building sector records biggest drop in activity since early in Covid-19 pandemicUK construction activity falls at steepest rate since Covid pandemicThe contraction in UK construction last month is another reason for the Bank of England to consider cutting interest rates at noon tomorrow.A rate cut, from 4.25% to 4%, is already widely expected – it’ s a 95% chance, according to the City money markets this morning.“The Bank of England is widely expected to cut rates this week in what is likely to be a complex decision as the MPC weighs weak growth, sticky inflation, and a looming fiscal tightening.While markets are pricing in a 0.25% cut, attention will centre on the voting split – particularly how many members vote for a 0.5% move or prefer to hold. Continue reading...