LiveMore comments on Bank of England base rate

Simon Webb, managing director of capital markets and finance at LiveMore, said: “At last, lenders, borrowers, tenants and brokers can breathe a sigh of relief that base rate has been paused at 5.25% rather than yet another rise. It was a close call though as the MPC members voted 5 to 4 in favour, and the hawks are still vying for further rate rises to bring inflation down.

“It will be interesting to see how the money markets react as swap rates have been coming down a little lately, as have mortgage rates. Putting the brakes on base rate will be cautiously welcomed by borrowers on variable rates, those due to remortgage and people looking to buy new homes or move. But there is now a nervous wait until the next MPC meeting where the hawks may once again takeover.”

Published: 21 September 2023