The Bank of England is widely expected to cut interest rates this month in a major shift in policy

HSBC has indicated that the Bank of England will reduce interest rates this month in a significant change of stance. Market experts suggest the decision could propel the property market into "full-on beast mode".

In a research note issued overnight, the bank stated it now anticipates the Monetary Policy Committee (MPC) to vote 5–4 in favour of a 25 basis point reduction, bringing the base rate down from 4% to 3.75% in December. Previously, HSBC had predicted rates would remain unchanged.

The bank observed that this shift aligns with market expectations, which are pricing in a 93% probability of a cut. It noted that Governor Andrew Bailey is expected to change his vote from November,

See Full Page