Posted on: May 30, 2024
When will the interest rates start to drop?
Before the latest inflation data this week there was a significant school of thought that interest rates may be cut up to three times this year. Inflation has reduced significantly and consistently since the 11.1% high in October 2022.
Our view is that the figure of 2.3% inflation figure this week, down from 3.2% in April was a significant improvement and this would have an effect on the decision to make an interest rates cut. However it appears this 2.3% figure fell short of the 2.1% figure that was predicted and as such this put the brakes on an early cut.
Bank of England Governor Andrew Bailey stated before this week’s inflation figures that a June cut was being considered but was by no means certain. These latest figures will do nothing to reassure borrowers and businesses that the rate cut in June will happen. And watch this space as many current world events could also influence matters in either a positive or negative way.
Reference articles can be found here…..
https://www.bbc.co.uk/news/articles/c033wprzep6o
https://www.morningstar.co.uk/uk/news/249557/uk-inflation-weakens-case-for-june-rate-cut.aspx
This is just an overview of the interest rates and does not constitute advice. If you require specific mortgage advice, please speak to one of our advisers…….
Craig Power craig.power@villagefs.co.uk
Or Luke Spires luke.spires@villagefs.co.uk
Or call 0118 9410026 or contact us through Facebook
30/05/2024
Your home may be repossessed if you do not keep up repayments on your mortgage
The information contained within was correct at the time of publication but is subject to change
