MorganAsh comments on BoE MPC decision

07 November 2024

Following the announcement from the Bank of England to cut the base rate to 4.75%, 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 utilities sectors.

Andrew Gething, managing director of MorganAsh, said: “While some may have been worried about the impact of the budget on a potential rate cut, the fall in headline inflation was clearly enough for the central bank to make its move – as widely predicted. The budget and changes to both government borrowing and the UK tax burden are more likely to impact the frequency of future decisions. There’s no question that the MPC will want to see this how this all plays out – as well as carefully watch activity abroad in the States and the Middle East, for example.

“Nonetheless, today’s news will be positive for potential buyers, as well as current borrowers – particularly those with variable or tracker mortgages. While it offers some welcome relief to the financial pressures felt by many households, it’s important to remember that we’re still not out of the woods just yet. Among positive signs, arrears data released today highlights the many households still facing real difficulty and in a potentially vulnerable situation.

“Just recently, we have seen examples of big-name firms in multiple sectors being fined for not looking after their vulnerable customers. Perhaps more alarming is that many firms that are still reporting few or even zero vulnerable customers – which just isn’t possible. Even with improving rates, it remains absolutely critical for businesses to know who their vulnerable customers are – and what outcomes they are receiving. Good data and robust processes are essential in achieving this.”