MorganAsh comments on BoE MPC decision

09 May 2024

Following the announcement that the Bank of England has held the base rate for a sixth consecutive time at 5.25%, we have a comment from MorganAsh.

MorganAsh provides the award-winning MorganAsh Resilience System (MARS) to enable brokers, advisers and financial services firms to better manage and evaluate consumer vulnerability and comply with Consumer Duty. It is in use across financial services and the utilities sector.

Andrew Gething, managing director of MorganAsh, said: “Even the biggest advocates for a cut to base rate would be unsurprised by today’s news, given the central bank’s continued emphasis on keeping rates higher for longer. News from their counterparts across the pond and on the continent will have only confirmed that view.

“While stability is of course no bad thing – especially for those on variable or tracker rates – it does mean that the prolonged financial pressures facing many borrowers will only continue. This is significant given the huge emphasis that has been placed on vulnerability by the likes of Consumer Duty, pushing firms to be alive to the challenges facing those clients in difficulty. As those pressures continue, it’s never been so important to know who your vulnerable customers are and what outcomes they are receiving.

“Consumer vulnerability continues to rise up the agenda, with the FCA’s ongoing review of how firms approach vulnerability, or our very own chair discussing vulnerable policies and practices on BBC Breakfast or Good Morning Britain. Whether it’s the public sector or regulated sectors, the scrutiny is real and expectations are high. That’s certainly true as pressures persist and a potential cut to base rate continues to look further away.”