November Monetary Policy comments
The Bank of England is on hold again and has voted to leave its base rate unchanged at 5.25%. Here’s what the team at Black & White Bridging thinks of the latest update: Commercial Director Damien Druce : ‘I’m pleased and welcome the hold, but I’m certainly not surprised with inflation continuing to fall. With Christmas imminent and the government seemingly getting on an election footing, we may see the BoE MPC continuing this trend. It’s hard to say for sure, but this hiatus brings stability, which is good for households and UK Plc.
Why It Matters
They could of course rise again in the new year if Christmas spending pushes inflation up…’ Director of Lending Oliver Bland : ‘Rates remain unchanged which is as expected given the cooling (albeit, still well above BoE target) inflation and the pressure faced by businesses and families with skyrocketing debt financing costs. We also have to consider that the government is in full-blown electioneering mode for the next 12 months and given the lack of support for rate rises (despite
How It Applies
the economic necessity) at the polls we are unlikely to see any major increases. One variable that could change that dynamic is continued high-wage growth, but we will have to wait and see.’ Director of Intermediaries Adam Tyler : ‘Following the hold on interest rates last month, the only course of action was to
Key Takeaway
follow with the same for November. Overall this is the only positive news we could expect as this shows the market that it can plan for a consistent approach from the Bank as we move into the New Year and beyond.’
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