During the last meeting on Thursday (February 6), the Bank of England (Boe) interest rates decreased the reference interest rate to 4.5%. The expected movement allowed participation in Great Britain to cling to some solid daily profits.

While a reduction by 25 rules was expected, the division into the Monetary Policy Committee (MPC) raised his eyebrows. Seven of nine members voted for a cutting of 0.25%. But two-in this “Super Hawk” Catherine Mann-even equalized up to 4.25%.

Why is it significant? Well, Mann regularly voted against cuts at previous meetings, and some were informed to do it again. Thursday change of the tray suggests changing thinking, perhaps throughout the MPC, which can lead to interest rate reductions in the coming months.

Strengthening the share price

The sharper than the expected decrease in interest rates would ensure a immense boost in the shares convoluted in Great Britain. This can potentially pay expenses for consumer and business and reduce loan costs for British companies.

Of course, a mighty and lasting decrease in interest rates is not guaranteed. Kwiecznia Inflation – which can be tightened by trade wars after the return of US President Trump – can complicate the future decisions of the Boe rate.

But what if the interest rates drops basically in the tiny -term period? Here are two actions in Great Britain, which in my opinion could grow particularly strongly and it is worth considering.

Berkeley

House builders like Berkeley (LSE: BKG) can be the most obvious beneficiaries of keen interest rates. The knockout effect that the demand for houses may have, increasing the buyer’s price accessibility, can be significant.

In this scenario, Berkeley actions can boost particularly strongly. With a forward price ratio (P/E) 10.6 times, FTSE 100 Builder is much cheaper than his peers with a blue chip, which in turn can ensure a immense range of price increases.

The house builder, like his peers, is already drawing prizes for recent cuts of rates (he said that he liked “”delicate [demand] Uptick“A few weeks before the latest trade update at the beginning of December). It can continue.

To say this, cost inflation remains a problem in the construction industry that could weaken profits. In addition, the benefit of interest rate discounts to the highest line of Berkeley can be compensated by the prolonged deterioration of the economic economy.

But in balance I think that things can look like Footie.

Assured

Real estate investment trusts (REIT), such as Assured (LSE: AGR) can also boost significantly if interest rates fall rapidly.

Lower rates may have two significant benefits for the profits of these real estate shares. First of all, they can reduce the cost of the loan, giving companies the opportunity to find better refinancing offers.

This, in turn, can also boost the implementation and acquisitions for financial growth.

Secondly, interest rate discounts can also boost Assura earnings, increasing net assets (NAVS). The valuation of the company’s portfolio dropped by 1% to 2.7 billion GBP in the last budget year (until March 2024), which reflects the impact of the boost in interest rates of Bank of England. Similarly to similar assets, they reversed 4%.

NAV has recently improved, and further interest rate reductions would boost this shoot.

It should be remembered that tax treatment depends on the individual circumstances of each client and may change in the future. The content in this article is provided only for information purposes. It is not to be, nor does it constitute any form of tax advice.

Remember, however, that future changes in NHS policy may have good or bad implications for REIT profits, regardless of changes in interest rates.