MorganAsh comments on BoE MPC decision

19 September 2024

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 utilities sectors.

Andrew Gething, managing director of MorganAsh, said: “Despite cuts from the ECB and a large cut from the Federal Reserve last night, the Bank of England has decided not to follow suit and instead to hold its position. In reality, this was widely expected, following its first cut last month and the staggered, cautious approach the central bank has planned to maintain when it comes to interest rates.

“The positive we have to take is that we are on the path of interest-rate cuts. The question becomes how long this process will take and where we will eventually land. This is especially pertinent for those on tracker- or variable-rate mortgages who feel the benefit of a cut almost immediately. While last month’s cut will have helped ease some of the financial pressures on households and the affordability challenges facing new borrowers, this burden on households remains very high. At least the consensus remains that a cut is expected in November.

“Across financial services, the focus on vulnerable customers remains incredibly important, with the regulator taking action on firms who cannot identify this cohort of customers or ensure good outcomes. With a continued stretch on household budgets having a clear impact on health and wellbeing, and on living standards, it’s all too easy for more customers to be pushed into a vulnerable position. Even as rates improve, our awareness of vulnerable customers and our ability to assess, identify and provide support remains a constant priority.”