June 20th, 2024
As the UK edges closer to a significant general election, the Bank of England has once again decided to maintain the base rate at 5.25%, marking the seventh consecutive meeting without a change.
This decision comes at a critical time when political outcomes could significantly influence economic stability.
The base rate has been steady since August 2023, reflecting the central bank’s cautious approach towards a slowly recovering housing market and persistent inflation concerns.
Despite earlier hopes for a rate reduction by June, persistent high inflation rates have pushed expectations further to August or later this year.
While the Bank of England’s stance offers short-term stability for borrowers, the long-term economic outlook remains uncertain, with inflation continuing to play a crucial role in future monetary policy decisions.
The potential for rate cuts later this year hinges on the downward trend in inflation, which many hope will stabilise the market and improve mortgage affordability.
As we approach the next base rate announcement, all eyes will be on how the general election outcomes might influence the Bank’s monetary policy. CMME remains committed to supporting its clients through these uncertain times, providing expert advice and tailored mortgage solutions.
No matter the financial landscape, CMME stands ready to assist you no matter your step on the property ladder. To book in for a FREE meeting with the team, click here and we can discuss your options.