MILLIONS of households could once again breathe a sigh of relief as interest rates are expected to remain unchanged next week.

Decision-makers at the Bank’s Monetary Policy Committee (MPC) are expected to keep interest rates at 5.25% for the fifth time in a row.

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The MPC will meet this week to decide whether the economy is showing the signs it wants to see before it starts cutting interest rates.

But economists say that, as things stand, only one member of the nine-member committee is likely to think conditions are right for a cut.

The Bank has indicated at recent meetings that cuts are likely in the future after interest rates have been raised or left unchanged at each meeting for the past four years.

When the group met in February, only one of them, Swati Dhingra, voted for a rate cut.

Two voted for an increase, but the rest said they should stay at 5.25%.

Robert Wood, chief Britain economist at Pantheon Macroeconomics, said he expects the same mood this time.

Mr Wood said: “The MPC focuses on ‘tightness in labor market conditions, wage growth and service price inflation’ to assess ‘how long bank rates should be maintained at current levels'”.

“We believe the data did not surprise enough to trigger a change in guidance at the MPC meeting on March 21.

‘The Bank will continue to signal interest rate cuts, but with little news on the timing.

“We expect the same 1-6-2 (cut-hold-hike) vote as last month,” he said.

The Sun’s James Flanders explains how to find the best deal on your mortgage

Since that last meeting, gross domestic product (GDP) data for December showed the UK economy contracting by 0.3%, pushing it into recession.

That was worse than the 0.0% move the MPC had expected.

Both unemployment and consumer price index inflation have also been lower than the MPC expected in its February forecast.

Figures from the Office for National Statistics (ONS) show that the annual rate of price increase remained at 4% in January.

Mr Wood said: “On the whole, the data since the last meeting of the MPC confirms the predictions – rather than questioning them.

“That’s all the BoE needs to stay on track summer interest rate cuts.

“In February, MPC forecast inflation would fall to 1.4% over two years if rates remained restrictive at 5.25%. Policymakers just need the confidence to rely on these forecasts.”

New consumer price index inflation figures for February will be released by the Office for National Statistics on Wednesday.

The Bank will have these figures before making a decision.

What an interest rate pause means for your money

Below we reveal more about what a rate break could mean for your money.

Mortgages

When interest rates rise, it usually means that your mortgage costs will increase, depending on the type you have.

Those with fixed rates are usually safe for now until they remortgage.

But other mortgages, such as a tracker or standard variable rate (SVR) mortgage, can also be directly affected.

Homeowners with an adjustable-rate mortgage may not see their payments increase immediately, but they are likely to increase shortly after interest rates increase.

But the exact amount depends on your loan and your loan-to-value.

However, if the BoE chooses to freeze current interest rates, your lender may choose to do nothing at all.

This will come as a huge relief to those who have experienced fourteen consecutive increases in their mortgage bills.

Either way, your bank should warn you of any increase in your rate before it goes up.

Here you will find more information about how to find the best mortgage rate.

Credit card and loan rates

Here too, the cost of borrowing through loans, credit cards and overdrafts may increase if the base interest rate is increased, because banks are likely to pass on the increased interest rate.

Certain loans you already have, such as a personal loan or car financing, usually remain the same because you have already agreed on the rate.

But rates on future loans could be higher, and lenders could increase rates on credit cards and overdrafts – although they should let you know in advance.

If interest rate increases are halted again, nothing will likely change.

However, you can still cancel a credit card if you wish. You then have 60 days to pay off the outstanding balance.

Savings rates

Savers are the most important group that has actually benefited from the last fourteen interest rate increases.

That’s because banks tend to enter the fray by offering market-leading interest rates.

Although banks usually take action much slower than when they pass on higher interest rates.

If the base rate does not rise, banks will probably benefit from this and also leave their interest rates unchanged.

Anyone currently getting a low rate on easy-to-access savings might find it worth shopping around for a better rate and moving their money.

Budget 2024 Expectations: Experts say some changes that could be brought about in the budget will equate the gaming industry with the toy industry, especially when it comes to the development of games and related products.

Budget 2024: During FM Sitharaman's Budget Presentations 2024, the gaming sector expects strict regulations for online games. Some experts said progressive allocations should be made to the sector in the upcoming Union Budget, including implementation of IT rules for online games and setting up of self-regulatory bodies. Others said they look forward to budgetary allocations in line with AVGC policies, in line with the recommendations of the AVGC Task Force report of the Ministry of Information and Broadcasting.

Soham Thacker, founder of Gamerji, said there needs to be something for real money gambling, casino games and the gaming industry in general that can involve playing video games. He further said that the budget should focus on the startup scenario in general as we keep talking about India being a startup friendly country and India Startup programs still lack incubation awareness and penetration and the government.

“In many developed and developing countries, there are various government subsidies, whether for investment, ease of doing business or amendment of laws for start-up companies. I hope it softens a bit, especially when it comes to an early-stage startup like us, rather than limiting taxation to the income point it should be of a company's growth trajectory or incubation time frame. Those are the few things I expect from the budget along with a lot of investments from the government point of view to boost the gaming industry as it is growing exponentially as we all know,” he said.

Roland Landers, CEO of All India Gaming Federation, said, “Significant regulatory progress has been made in the online gaming sector, and we expect progressive allocations to be made to the sector in the upcoming union budget, including for implementation of IT rules for online games. and the establishment of self-regulatory bodies. In addition, we look forward to budget allocations that are in line with AVGC policy, in line with the recommendations of the AVGC Task Force report of the Ministry of Information and Broadcasting.

He said that given the very positive outlook for this industry, there is a lot to expect for the gaming sector. We see this budget as a symphony of support, by aligning regulatory clarity with fiscal incentives and strengthening the legal infrastructure to stimulate growth. With the right emphasis, the online gaming industry can be a cornerstone of Digital India and serve as a catalyst for the government's vision of Amrit Kaal – a five trillion dollar economy.

Vidushpat Singhania, Managing Partner, Krida Legal (specializing in gambling laws), said: “The Indian gambling sector was poised to become a global leader, on par with the IT industry. Certain government policies such as appointing a central ministry for online gaming, promoting gaming exhibitions and promoting funds for the AVGC sector kept the gaming industry and its investors in a positive and optimistic mindset were wrong.

He said minor adjustments such as revising the GST on the gaming industry and imposing it on gross gaming revenues in the Union government's interim budget will restore operator and investor confidence. This would also be in line with the government's position after six months, especially since the government has made a statement before the Supreme Court that tax collection after the clarification/amendment has not been as per their estimates.

He added that some other changes that could be brought about would equate the gaming industry with the toy industry, especially when it comes to the development of games and related products.

Dr. Aruna Sharma, Policy Advisor and Practitioner Development Economist, said: “Over the past few years, the gaming industry has witnessed exponential growth, offering the potential to establish India as a prominent hub within the sector. Critical considerations such as mitigating shocks such as GST improvements and retroactive effects are imperative. A comprehensive understanding of goods and services is essential to address these issues.

She said the anti-money laundering framework needs to be effectively monitored due to the digitized nature of the entire process. “By embracing and regulating the iGaming industry, India can achieve positive outcomes, including increased revenues, economic growth, job creation and improved consumer protection. It is time to lay the foundation for a regulated and thriving Indian market, ensuring sustainable development and reaping the benefits of a thriving iGaming sector. There are positive aspects to the formation of SRO and the development of SRB. IT rules are in place and states like Karnataka are taking steps in the positive direction,” she said.

Budget 2024: Some other experts expect incentives for battery manufacturing units and a robust supply chain for EV components.

New Delhi: While Union Finance Minister Nirmala Sitharaman will present the interim Budget 2024 on February 1, the auto industry is expecting major action from the Finance Ministry. Some industry experts expect a comprehensive policy framework for EVs and good insurance standards tailored to EVs. Some other experts expect incentives for battery manufacturing units and a robust supply chain for EV components.

Speaking to India.com, Hari Kiran, co-founder and COO, eBikeGo, said that as Budget 2024 approaches, the auto industry is waiting for insights into the GST landscape, especially for entry-level two-wheelers.

He said expectations include updates on the potential FAME 3 scheme, PLI solutions and revisions in the GST for two-wheelers. “Looking beyond the financial allocations, we hope that the budget unveils a comprehensive policy framework for electric vehicles, addressing licensing, safety and insurance standards tailored to electric vehicles. To reduce costs, a focus on localizing battery production is critical, with incentives for battery manufacturing units and a robust supply chain for EV components,” he said.

Brajendra Singh Tomar, CEO and co-founder of Finayo, said that as the Union Budget 2024-25 approaches, India's electric vehicle (EV) industry is eagerly looking forward to the rollout of policies aimed at boosting growth and promoting the country's e-commerce. mobility objectives.

“We expect continued support in the form of demand-side incentives, including tax breaks for electric vehicle buyers and an expansion of subsidies under FAME-II. Setting up a robust EV charging infrastructure is equally crucial, especially in Tier II and Tier III cities,” he said.

He said the automotive industry is calling on the government to release substantial funds for the development of charging facilities. “Highlighting open data standards and APIs for charging networks is essential in the Budget as this would promote interoperability and foster a thriving software ecosystem,” he said.

Shashank Donthi, CEO of Hynetic Electronics, said: “My outlook for India's 2024 budget is centered around a shift from carbon dependence to embracing energy efficient policies, especially within the context of the energy sector. It is critical for the government to channel investments into rural infrastructure and provide incentives that increase the financial viability of sustainable energy solutions,” he said.

He added that the success of 'Make In India' depends on robust infrastructure and streamlined processes for SMEs through digital means, thereby promoting local manufacturing. Large-scale projects, including multi-modal transport, will increase the competitiveness of Indian industry, boost exports and address fiscal deficits, he added.

Veer Singh, CEO of Lord's Automotive Pvt. Ltd, said: “As the sales of electric vehicles in the country are witnessing healthy growth, we expect the government to propose budgetary provisions to expand the FAME II (Faster Adoption and Manufacturing Electric Vehicles) program with the aim of support growth of electric vehicles. Government policies and regulatory standards have been favorable to the automotive industry so far. In the interim budget, the government is expected to continue the existing policy and regulatory framework,” he said.

Abhinav Kalia, CEO and Co-Founder, ARC Electric, said: “As we step into 2024 and witness the progress in the EV and automotive industries, our optimism is accentuated by the anticipation around Budget 2024. The continued initiatives of the government, such as subsidies, tax cuts and partnerships have played an important role in driving development.”

He said that with the EV market expected to grow by over 100% by 2024, he looks forward to continued support in the upcoming budget.

Budget 2024: Some food and beverage industry experts are calling for a gradual reduction in excise duties, which currently exceed 50% of the retail price, to boost volume and curb illicit trade.

Budget 2024 Latest updateAs the central government gears up to present Budget 2024 on February 1, the food and beverage industry has big expectations from Union Finance Minister Nirmala Sitharaman. Some industry experts expect tariffs on alcohol products such as spirits, beer and wine to drop. While some other experts expect financial support or tax breaks for the introduction of digital payment systems.

Drink prices need to come down

In conversation with India.com: Ajay GodaPartner Byg Ventures said that as he works in the Alco Bev retail industry (bars and restaurants), he is definitely looking forward to the drop in alcohol prices to make them more affordable for consumers.

“But excise duties are the subject of the state and this has more effect on pricing. From the Union Budget, we expect that import duties on alcohol products such as liquor, beer and wine will decrease. Currently this is 150%. The FTA (free trade agreement) has made this happen. There are talks and negotiations that this could drop to 100% and later even to 50%. We are curious whether a reduction in import duties will be announced in the 2024 budget.

He added that states should also reduce their excise taxes on alcohol. he said that in Karnataka, the excise duty on imported bottles and liquor is Rs 5,358 per litre, which is extremely high.

Reduction of excise duties

Tushar BhandariManaging Director of Associated Alcohols & Breweries Limited, said: “The sector is buzzing with potential, fueled by a thriving premium segment (8-10% growth) and rising disposable incomes.

“We seek a gradual reduction in excise duties, which currently exceed 50% of the retail price, to boost volume and curb illegal trade. Harmonizing government regulations and streamlining permits will unlock operational efficiencies. E-commerce, a Rs 5,000 crore behemoth with a growth potential of 15-20%, needs a clearer regulatory framework to flourish,” he said.

Subsidies for local food purchasing

Manik Kapoor, Director of Gola Sizzlers, Cafe Hawkers and Sambar Soul Restaurants: Anticipating the upcoming budget, Gola Sizzlers is hoping for a revamped liquor licensing process, coupled with lower fees. In addition, support in the form of subsidies for local food purchasing is essential to tackle rising purchasing costs. We also look forward to tax adjustments and incentives to promote sustainability, paving the way for a more robust F&B industry.

Rajat Kapoor, Director of Gola Sizzlers, Cafe Hawkers and Sambar Soul Restaurants, said: “As the industry embraces digital evolution, Gola Sizzlers is seeking government support for technology upgrades. This includes financial support or tax breaks for adopting digital payment systems, online ordering platforms and modern kitchen technologies.”

He further added that training and employment programs are crucial in raising service standards and creating more employment opportunities in the hospitality sector.

Israel expects the war in Gaza to continue for “many more months”, its military chief of staff said, while Israeli officials signaled they would continue their attack despite international calls for a ceasefire.

Chief of Staff Lieutenant General Herzi Halevi said on Tuesday that Israeli forces were focusing their efforts on southern Gaza after making progress against Hamas in the north. But he added that while Israel had killed “many terrorists and Hamas commanders,” destroyed parts of the militant group’s underground infrastructure and captured weapons, it was likely that some Hamas fighters in the northern part of the enclave were left behind.

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22-time Grand Slam champion Rafael Nadal has been out of action for about a year due to an iliopsoas injury in his left leg.

New Delhi: World No. 3 tennis player Daniil Medvedev admitted that Rafael Nadal is still expected to be a “big challenge” for him next season when the Spaniard returns from a long injury layoff.

The 22-time Grand Slam champion will make his comeback after a year away from competition due to an iliopsoas injury in his left leg at the Brisbane International before competing in the 2024 Australian Open.

Nadal, 37, is undoubtedly nearing the end of his career, but Medvedev admitted it was still a daunting prospect when discussing the Spaniard’s return with The National.

“It’s just that in all the seasons he played he won a lot of games and didn’t lose a lot. It is very difficult to beat him,” Medvedev told The National.

“In fact, I may have had even less success with Rafa than with Novak. But we had some close games where I felt like I could win and maybe he got the edge in the end. So for me it will be a big challenge if I have to meet him.

“I don’t know what his form is at the moment, no one knows, and how he will deal with it. But from what I saw it looks like he is doing well and that is great for tennis,” he added.

Medvedev had won four ATP titles but failed to win a Grand Slam title in 2023. He came close to the US Open, but lost to Djokovic in the final. Medvedev had faced Djokovic, Carlos Alcaraz and Jannik Sinner 12 times in 2023, winning four of those encounters.

Besides Djokovic, Alcaraz was the other player to win the Major this year, but Medvedev and Sinner are considered the best of the rest.

“If we look at last year and a lot of different tournaments, at a certain point in the season and especially at the end we are a bit separated from the rest in terms of points,” Medvedev said.

“But I think this also shows that every season can be different. Stefanos (Tsitsipas) reached a final at the Australian Open; for various reasons he had a more difficult end to the season, but he can get back there and pass me, Sinner or Carlos or Novak, whoever.

“So I would still be careful with something like this. Last year, at the beginning of the season, I was outside the top 10.

“The only thing we are sure of is that Novak is always there. I could be one of the ten, Novak is always there. So hopefully I can be part of this top four and whoever the other three guys and I are going to try to do that,” the world number one added. 3 Medvedev.

ANZ chief executive Shayne Elliott has warned Australians to expect interest rates to remain high for years with no relief in sight.

The Reserve Bank raised interest rates for the thirteenth time in eighteen months in November, bringing the cash rate to a twelve-year high of 4.35 percent.

While inflation fell to 4.9 percent in October, annual levels still remain well above the RBA’s target of 2 to 3 percent, with the RBA itself blaming high immigration for fueling pressure on consumer prices .

Elliott warned that interest rates for borrowers are likely to remain high for years to come, with cuts in 2024 or even 2025 unlikely, as “baked-in” government spending on defence, the NDIS, renewable energy and transport infrastructure keeps inflation high.

“You have to take a step back and forget about next year, just think about the next five years,” he said The Australian.

He said federal government spending and high immigration were adding to price pressures.

“Everything Western governments, including Australia, want to do is fundamentally inflationary. Even in the very short term, higher immigration levels are putting additional growth pressure on the Australian economy.”

More than 400,000 net migrants moved to Australia in the year to September and the Reserve Bank expects inflation to remain above three percent until the end of 2025.

Elliott said the Australian government would have to give up huge infrastructure projects if it wanted lower interest rates.

“If we still want to do all those things, something else has to happen.”

Reserve Bank of Australia Governor Michele Bullock told a conference of central bankers in Hong Kong last week that high immigration is increasing inflationary pressures.

“The other thing that’s going on is we’ve had very strong immigration into Australia,” she said.

‘And even though we see consumption per person decreasing, total consumption remains at the same level.

‘It’s not particularly strong, but strong enough.

‘That has also led to demand being maintained.’

Elliott is much less optimistic than the OECD, which revealed last week that it expects the RBA to cut rates three times, starting in the September quarter of next year and continuing until the end of 2025.

This would cause the cash interest rate to fall to 3.6 percent for the first time since May 2023.

The futures market expects interest rates to remain at current levels until February 2025.

Mr Elliott said spending on defence, transport infrastructure, the National Disability Insurance Scheme and renewable energy would increase inflationary pressures.

“These things are going to be inflationary,” he said.

The federal government has achieved a budget surplus of $22.1 billion for the 2022-2023 period, the first since 2007 and the first for Labor since 1989.

But the U.S. Treasury Department’s Intergenerational Report, released in August, projected deficits through 2063, following this one-time surplus based on higher commodity prices that boosted government revenues.

Under the AUKUS agreement with the US and Britain, $368 billion will be earmarked for eight nuclear-powered submarines until the mid-2050s.

The most aggressive tightening of monetary policy since 1989 has resulted in variable mortgage rates rising from levels starting with a ‘two’ to levels approaching seven percent in eighteen months.

Financial comparison group Finder’s Cost of Living Pressure Gauge found that 79 percent of respondents were stressed about their finances in November.

Graham Cooke, head of consumer research at Finder, said interest rate increases were reducing savings.

“As households look to further expand their budgets, this will impact their ability to build a decent savings buffer to protect themselves from further pressures,” he said.