The 14th consecutive rate expected today has arrived – a 0.25% increase. With talk of a quarter or perhaps even a half percent rise, we should perhaps be pleased as it could have been worse.
With inflation figures disappointing but not as bad as they might be, pressure to raise rates has lessened. The great British summer weather is also doing its best to deter spending with many opting to stay in rather than spend long afternoons in pub gardens and holiday resorts. This is good news, at least economically.
To compete for new customers, some lenders have already started to trim lending rates albeit by small amounts but rates are still at an eye-watering level compared to just a year ago.
The general feeling is that – at least with current conditions – we are reaching the end of the rising stage and after 14 hikes, many would say ‘about time too!’
Inflation figures are better, house prices are declining and fuel has remained cheaper for some time now – there is reason for cautious optimism but we should be under no illusions. Things are about to get even more difficult for millions of property owners.