Global Risks Reflect Cautious Approach
The Bank of England held the base rate at 4.25% this week, citing the need for more evidence that inflation is falling sustainably. While headline inflation has eased to 3.4%, it remains above the 2% target, with services inflation and wage growth still exerting upward pressure. The Monetary Policy Committee voted by majority to keep rates on hold, reflecting a cautious approach amid mixed economic signals.
In its post-meeting statement, the Bank highlighted ongoing global risks and inflationary uncertainty. Governor Andrew Bailey reiterated that future decisions will be data-driven, with no fixed timetable for rate cuts. Markets now anticipate the first cut as early as August, if inflation and wage data continue to cool.
Short-Term Swaps Fall
Short-term swap rates have fallen slightly due to improved inflation data and growing market confidence that the Bank of England may begin cutting the base rate later this year. Swap rates reflect lenders’ expectations of future interest rates, so a decline suggests the market sees less need for prolonged high rates. As a result, lenders can price short-term fixed mortgage products more competitively, making 2-year fixed rates a more viable option for borrowers seeking flexibility ahead of expected rate cuts in 2025.
20th June Swaps
8th May 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.
