Interest rates rise to 3%
Today the base rate was increased from 2.25% to 3%, a 0.75% increase. The single highest increase in 30 years. When the Monetary Policy Committee (MPC) meets there are 9 members each with a vote. All 9 voted in favour of increasing the rate.
The voting in detail.
| Member | Direction | Amount |
|---|---|---|
| Andew Bailey (Governor) | increase | 0.75% |
| Ben Broadbent | increase | 0.75% |
| Jon Cunliffe | increase | 0.75% |
| Huw Pill | increase | 0.75% |
| Jonathan Haskel | increase | 0.75% |
| Catherine Mann | increase | 0.75% |
| Dave Ramsden | increase | 0.75% |
| Swati Dhingra | Increase | 0.5% |
| Silvana Tenreyro | increase | 0.25% |
Predictions for 2022
Analysts and industry commentators continue to predict that the base rate will increase again by the end of 2022. So one more increase to follow and not a surprise as inflation continues to rise. Already the expectation is another 0.5% or 0.75% increase at the next MPC meeting which would see the base rate rise to as high as 3.75%.
Outlook
Many analysts continue to suggest the position will get much worse into 2023. Although previous predictions of a 6% peak have been reduced to around 5%. Some mortgage lenders have started to reduce rates on products after swiftly increasing them in recent weeks.
Lee Wisener, CeMAP, CeRER, CeFAP
Having worked in the mortgage industry for over 20 years I have always wanted to build a website dedicated to the subject. Also being a geek when it comes to the internet all I needed was time and I could both build the site from scratch and fill it with content. This is it!
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