The Bank of England holds interest rates again at 5.25%
Thursday 9 May, 2024
The Bank of England announced in May (09/05/2024) that it has again held the Base Rate of interest at 5.25%. This maintains the 16-year high for the interest rate. The Bank’s decision to hold the interest rate is its sixth pause in a row.
The Monetary Policy Committee of nine members, which is tasked with making the decisions for whether to raise, lower to hold the rate voted seven to hold with the remaining two voted to cut the rate.
The Bank of England governor, Andrew Bailey, says it needs to "see more evidence" of falling inflation before cutting the base rate, but added that he is "optimistic that things are moving in the right direction".
As it stands, the UK inflation rate has fallen to 3.2%, however it is still above the Bank's target of 2%.
Today's announcement regarding the base rate was largely anticipated, aligning with many analysts’ expectations.
However, there are forecasts suggesting that the Bank of England might lower the base rate twice before the end of the year. Potentially with the initial reduction occurring as soon as the upcoming months.
Should these projections materialise, it could signify a decrease in the base rate from 5.25 percent to 4.75 percent by the end of 2024.
Working with the current mortgage market continues to be a tough process. Speaking to an experienced and professional local Mortgage Adviser is recommended for truly tailored advice and assistance in finding the most suitable mortgage deal for your needs.
Speak to a mortgage adviser
Nathan Hall Mortgage Adviser in Southend, Essex said “In a climate where interest rates persist at heightened levels and the landscape of the mortgage market grows more complicated, the importance of seeking expert mortgage guidance grows. A skilled mortgage advisor possesses the expertise to guide you through the labyrinth of choices, to find the optimal value for your finance”.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Sources:
https://www.bbc.co.uk/news/live/business-68980175
Approved by The Openwork Partnership on 17/06/2024.
