Stability Until May Predicted
The Bank of England has maintained the base rate at 4.5%, aligning with economists’ expectations amid global uncertainties, including U.S. trade policies and domestic economic challenges. Inflation has decreased from a peak of 11.1% in October 2022 to 3%, but remains above the 2% target. The UK economy grew by just 0.1% in the fourth quarter, narrowly avoiding recession. Given these conditions, the Monetary Policy Committee is anticipated to hold rates steady until May, with potential rate cuts later in the year as inflationary pressures ease and economic growth stabilises. Economists caution, however, that external geopolitical risks and persistent wage pressures could delay these rate reductions.
Swap Rates Steady In March
Swap rates have held steady in March primarily because financial markets anticipated the Bank of England’s recent decision to keep the base rate unchanged at 4.5%. Although inflation unexpectedly climbed to 2.3%, investors had already priced in concerns about persistent inflation and elevated government borrowing earlier in the month. This foresight reduced volatility, stabilizing gilt yields and swap rates. Additionally, economists predict rates will remain stable until at least May, which has further reassured investors. Nevertheless, borrowers should remain cautious, as ongoing economic uncertainties and sustained inflation could still drive up future swap rates, impacting mortgage pricing.
20th March Swaps
8th March Swaps
Late Appointments Now Available
With flexible appointments available until 7pm, we make it easier than ever to fit mortgage advice into your busy schedule. With todays reduction in the base rate and 2025 predicted to be on of the busiest years yet, securing your spot early is essential.
Don’t wait to take control of your finances and start the year with confidence and peace of mind. Contact us today to explore your options and ensure you’re set up for success. Lets make your property goals a reality.
