Breathing space and a boost to confidence? - Comment on the MPC interest rate decision from Adam Oldfield at Phoebus Software

02 November 2023

Adam Oldfield, chief revenue officer at Phoebus Software, says “We may not have had the ubiquitous crystal ball to help us predict the MPC’s decision today, but it turns out we didn’t need one. Keeping the base rate steady for another month is the sensible thing to do. We’ve been calling for the committee to give all the increases this year time to take effect and, although we know there are other factors at play, the overall effect is some breathing space and hopefully a boost to confidence.

“Lenders have been reducing interest rates recently as two-year swap rates fall below five per cent, so this hold from the Bank of England may well encourage more deals to come to market. The number of people coming off fixed rates is very high and many have been flipping onto SVRs, which is driving the cost of mortgage payments up past a point not experienced before. Arrears are increasing, which is almost inevitable, but perhaps those on higher rates may find better deals in the coming months?”