Homeowners were given hope of three interest rate cuts this year by a new report by leading economists. The International Monetary Fund raised the prospect of summer cuts to interest rates by the Bank of England, the firstly possibly as early as June, and of a fall from 5.25 per cent to 4.5 per cent in 2024. “Inflation could be lower (and growth higher) if favourable second-round effects from falling energy prices are stronger and permit earlier and larger rate cuts,” it said in a report on the UK. The bank’s interest rate-setting Monetary Policy Committee had highlighted energy price falls and declining inflation as issues to watch to “guard against the risk of premature easing”. The IMF added: “At the same time, there is a risk of delayed easing. Keeping Bank Rate constant as inflation and inflation expectations fall would raise ex-post real rates, which could stall or even reverse the recovery, and lead to an extended undershooting of the inflation target. “(IMF) Staff’s recommendation of about 50-75 bps cuts (0.5 to 0.75 percentage points) in 2024 is aimed at balancing these risks.” Cuts to interest rates would benefit people on variable mortgages, but those coming to the end...