Mortgages.scot

Well, I had hope, as I'm sure others did, but interest rates did not reduce this month. The Monetary Policy Committee met today and decided to continue a cautious approach.

The voting was identical to last month's, with a 7-2 majority of all the same voters and all voting as they did last month.

MemberDirectionAmountAndrew Bailey (Governor)Hold5.25%Ben BroadbentHold5.25%Huw PillHold5.25%Megan GreeneHold5.25%Sarah BreedenHold5.25%Jonathan HaskelHold5.25%Catherine MannHold5.25%Swati DhingraDecrease5%Dave RamsdenDecrease5%

Unsurprisingly, as I suggested yesterday, the high growth of services appears to have caused the continued cautious approach. Investors are now backing away from a rate reduction at the next meeting on Thursday, 1st August 2024.

The meeting on the 19th of September 2024 is now being touted as the most likely point the Bank of England will consider reducing rates. Some economists continue to bet on a reduction in August, but I am less optimistic about it.

There is still an expectation that three cuts will be made this year, bringing the rate from 5.25% to 4.5% by December 2024.