LiveMore comment on rise in inflation

20 July 2022

Simon Webb, managing director – capital markets and finance at LiveMore, said: “As expected inflation has gone up in June to 9.4%. Until we can get some clarity on when inflation will start to stabilise, the financial markets will be choppy and pressure will continue on the Bank of England to increase the base rate.

“The Bank has said it expects inflation to carry on rising this year and will start to slow down next year; and take around two years to be nearer to the 2% target. But with so much uncertainty in the world today, it’s difficult to predict.

“However, I think it is likely the base rate will increase again at the next MPC meeting, and there has been speculation that it could be a 0.5% rise instead of 0.25%. That’s even more reason for borrowers to lock into a longer-term fixed rate mortgage knowing that monthly payments won’t change for a long period of time.”