MPC interest rates comment from ONP Group

03 August 2023

Mark Tosetti, Group Partnerships Director of ONP Group comments on the Bank of England’s decision to raise interest rates

Please find comment on today’s Bank of England MPC interest rate news from ONP Group.

Mark Tosetti, Group Partnerships Director of ONP Group commented: “As widely anticipated, we have a fourteenth interest rate rise, but have thankfully avoided a repetition of the half-point increase witnessed in June.

“Mr Sunak’s aspiration to halve inflation this year looks grim despite June's encouraging drop. It does raise the question, what is the optimal inflation level required for economic stability, before the MPC can consider cutting interest rates?

“There is a prevailing belief that interest rates may peak a little higher but confidence is growing that there will be a decrease further into the year. Only then will we see the much-needed certainty in the cost of borrowing and the return of stability for swap rates. This would then lead to an increased availability of products that better meet the needs of consumers.”