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Bank of England Base Rate Decision – November 2023


Bank Base November 2023

The Bank of England Monetary Policy Committee has decided to hold the Bank Base interest rate at 5.25% for the second time in a row, after 14 consecutive rises before that.

The decision was not as close as last months, with six members of the Monetary Policy Committee voting to keep the rate the same; whilst the other three wanted a further increase.

You could almost hear the collective sigh of relief from mortgage borrowers across the country as the Bank of England sensibly decided to keep interest rates on hold once more.

They do now seem to be heeding the warnings from some quarters that going too far with rate rises could cause significant problems for the economy as a whole.

There is some evidence now that inflation is naturally waning, and we could see the pace pick up over the coming months. In fact, there is some debate now as to whether the Bank should start to cut rates in the near future.

However, The Bank of England Governor, Andrew Bailey has said that he expects rates to stay higher for longer as they keep a watchful eye on inflation, ruling out cuts in the short/medium term.

The issue is that as thousands more borrowers come off low fixed rates into the current environment, this could have a profound effect.

The Bank are walking a narrow tightrope now, as their pretty bleak assessment of the overall economic landscape shows, and their next decisions will prove crucial not just for borrowers and the economy at large, but also weigh in on the upcoming General Election next year.

We should continue to see SWAP rates ease gently over the coming days which will give lenders more space for further rate cuts. As competition continues to grow, we could finally be on the cusp of a new rate war.

Watch this space…

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Andrew Montlake

Written by Andrew Montlake

Andrew Montlake, better known as Monty, began his journey with an Hons degree in Economics & Politics before starting in the mortgage industry in February 1994. As a main founder of Coreco in 2009, he successfully grew the brand, marketing, and communications, and was made MD in 2019 focussing on the overall vision, strategy, and culture of the company. As Coreco’s media spokesperson, Andrew can often be seen or heard on TV and radio as well as regularly commenting in the national, local, and trade press. He is the author of this acclaimed Mortgage Blog and is well-known for his social media, podcasts, and public speaking. Andrew is now proud to serve as Chairman of the Association of Mortgage Intermediaries, (AMI) as a cheerleader for the Mortgage Industry as a whole and continues to work at the coal face, writing mortgage business and advising clients.

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