Bank of England MPC bank rate announcement: comment from Mark Tosetti, Group Partnerships Director at Movera (including ONP Solicitors)

01 February 2024

Mark Tosetti, Group Partnerships Director at Movera, a group of home moving businesses including ONP Solicitors, commented:

“It comes as no surprise that the Bank of England has held the bank rate at 5.25% again this month. But it is disappointing that it is only forecasting inflation to fall temporarily to the 2% target in 2024 Q2 before increasing again in Q3 and Q4. However, the announcement has offered some rays of hope in that the MPC’s projections are conditioned on a market-implied path for bank rate that declines from 5.25% to around 3.25% by the end of the forecast period, almost one percentage point lower on average than in the November Report.

“How will this affect the home-moving market? Mortgage rates have been tumbling and, if the Bank of England bank rate falls, we could see more mortgage rates cuts which would be no small relief for both new borrowers, and homeowners looking to remortgage.

“However, we mustn’t forget the many UK households facing heightened mortgage costs and those suffering from the brunt of the cost-of-living crisis. In the industry we must all pull together to support homebuyers as the situation evolves. As ever, our focus at Movera will be on providing expedient service for those looking to move or remortgage this year.”