One member of the MPC voted to cut rates to 5 per cent, though the other eight opted to keep rates at the highest level in around 16 years.
“We’ve held rates again today at 5.25 per cent because we need to be sure that inflation will fall back to our 2 per cent target and stay there. We’re not yet at the point where we can cut interest rates, but things are moving in the right direction.”Economists are divided on when the Bank of England will drop interest rates, though almost all expect at least one cut this year.
Since the start of August 2023, the average two-year fixed rate has fallen from 6.85 per cent to 5.79 per cent and the average five-year fixed rate has fallen from 6.37 per cent to 5.35 per cent. “This won’t be an overnight success unfortunately, but there is no reason why we should expect to see a 5-year fixed rate sub 4 per cent based on current pricing in the not-too-distant future.”
Source: Loan Digest (loandigest.net)
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