Interest Rates Rise to 4.5%
I predicted last month that we would see a 0.25% rise if inflation does not fall in a material way which it didn't, so here we are with another increase. The rises may not be over just yet.
The voting
There was a full committee of 9 for the vote. 7 voted to increase by 0.25% and 2 votes to maintain at 4.25%.
| Member | Direction | Amount |
|---|---|---|
| Andew Bailey (Governor) | increase | 0.25% |
| Ben Broadbent | increase | 0.25% |
| Jon Cunliffe | increase | 0.25% |
| Huw Pill | increase | 0.25% |
| Jonathan Haskel | increase | 0.25% |
| Catherine Mann | increase | 0.25% |
| Dave Ramsden | increase | 0.25% |
| Swati Dhingra | Maintain | --- |
| Silvana Tenreyro | Maintain | --- |
Outlook
Once we see how inflation looks next week it is hoped it will encourage the Bank of England to stop rate rises. If I was a prediction type of person I am expecting a further 0.25% increase next time and if inflation continues to fall rates will start to get held around 4.5%. But we could see it move higher, unfortunately, there are many changeable factors and it's no longer that easy to predict too far in advance.
The pain is still not over yet!
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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