We Financial Base Rate Update - November 2024

The base rate drops again!

Just the news we need to hear before the silly season approaches… The Bank of England have dropped the base rate to 4.75%. Inflation is currently running at 1.7%.

The experts report: “There has been continued progress in disinflation, particularly as previous external shocks have abated.” But they remind us that domestic inflationary pressures are resolving slowly. With this in mind, chat to us today to see how we can help you with your mortgage.

BoE predicts that the Autumn Budget will help with inflation – hence the decision to drop the rate now. But they emphasise, the outlook for the labour market is currently unpredictable. They say, “Data are difficult to interpret and wage growth has been more elevated than usual…. The impact of the Budget announcements on inflation will depend on the degree to and speed with which these higher costs pass through into prices, profit margins, wages and employment.”

In short, the Bank of England's base rate is what it charges other lenders to borrow money. And this number goes up and down to control what people can borrow. A high rate reduces the demand for borrowing. So, the higher rates discourage people with loans to excessively spend money they owe. Of course, mitigating these increases has put pressure on many families and individuals. So, this drop in the base rate will bring a welcome relief!

Understanding statistics and government policy can be confusing. And can mean something different for everyone. By speaking with us directly, we can explain what this means for you and your family.

Contact us today. We are here to help!

Office: 01279 973 373
Email: info@wefg.co.uk

Source: https://www.bankofengland.co.uk/monetary-policy-summary-and-minutes/2024/november-2024