MorganAsh comments on BoE MPC decision

01 August 2024

Following the announcement that the Bank of England has cut the base rate to 5%, we have a comment from MorganAsh.

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

Andrew Gething, managing director of MorganAsh, said: “This is the news that many would have been hoping for, especially those households on tracker or variable rate mortgages who will feel this almost immediately. That little bit of relief will be hugely welcome given the immense pressure that has been put on household budgets for a sustained period of time, and the impact this has on health and wellbeing, and living standards more broadly.

“Of course, we are not out of the woods just yet. Interest rates remain very high and households across the country still face difficulties. With Consumer Duty now in force across all of financial services, it’s an important reminder for firms to stay vigilant and continue efforts to identify vulnerable clients and stay close to them. Good data is absolutely essential to this.

“With the central bank now making its first move, the hope for many will be that a second cut will follow later in the year as predicted. This growing momentum will not only give lenders the platform to re-price and increase competition, but it will hopefully take the edge off strict affordability requirements which are stopping many borrowers from accessing a better deal.”