This month, the Office for National Statistics (ONS) reported that inflation had fallen to 3.4% in the twelve months to February 2024.\u00a0 This is down from 4% in January and means that inflation is at its lowest point in two and a half years.<\/p>\n
The impact of getting closer to the Government\u2019s 2% inflation target could then mean the Bank of England\u2019s MPC (Monetary Policy Committee) decide to reduce interest rates.\u00a0 With inflation slowing, this looks to be a likely scenario and mortgage rates are expected to fall in anticipation of the base rate cuts.<\/p>\n
The latest meeting of the MCP was the first in three years in which none of the members voted to increase the Bank\u2019s interest rate.\u00a0 After the meeting, the Governor of the Bank of England confirmed that they would now be considering reducing rates.\u00a0 Traders have already started to price those reductions in, with a now 20% chance that the interest rate will decrease as early as June this year.\u00a0 If this happens, it will mean that the Bank of England will have cut interest rates before its sister global banks in both the US and Europe, as they are only predicted to have a 10% chance of rate cuts from as early as June.<\/p>\n
The Governor all but confirmed that this is the peak of the interest rates as he now only sees them decreasing from this point forwards.\u00a0 This will undoubtedly have an effect on different banks\u2019 savings rates.\u00a0 Interest rates are fluid and if you don\u2019t have a fixed term with your savings account, the return figures could change without you knowing.\u00a0 So, you should be keeping a close eye on how much interest your savings accounts are offering and whether there are better options out there you could secure.<\/p>\n","protected":false},"excerpt":{"rendered":"
This month, the Office for National Statistics (ONS) reported that inflation had fallen to 3.4% in the twelve months to February 2024.\u00a0 This is down from 4% in January and means that inflation is at its lowest point in two and a half years. The impact of getting closer to the Government\u2019s 2% inflation target could then mean the Bank of England\u2019s MPC (Monetary Policy Committee) decide to reduce…<\/p>\n