Mortgages.scot

Inflation peaked in October 2023 at an incredible 11.1%, the highest recorded for at least 40 years. I won't dwell too much on inflation itself; I've done that a lot over the past year or so. Let's touch on what is relevant.

What's changed

Gas and electricity are the primary helpers in reducing inflation, which also reduces the energy cap. Petrol has gone up by around 3p a litre in in the last couple of months. House prices are increasing, but there is good news for those renting (privately) as rents have fallen slightly. Although caution is still needed here, renters are still struggling.

It's a mixed bag, but depending on who you are and your costs, there are more positives than negatives.

Will rates now come down?

The MPC meet to decide on interest rates on 20th June 2024. Will they reduce rates? Not guaranteed. Whilst inflation is down to normal levels, they still keep one eye on the US, and few sign rates are coming down there right now. At the last meeting, there were nine votes, and only two voted for a reduction. It's not the sign of a committee on the cusp of reducing anything, but who knows?