Access FS says BoE cut "inflationary shocks now put to bed"

07 November 2024

Karl Wilkinson, CEO of Access Financial Services, said: “Today’s BoE interest rate cut is solid evidence that years of inflationary shocks have now been put to bed. It’s particularly good news for first-time buyers determined to get out of rented accommodation. That said, many FTBs will still struggle to raise a deposit, which is where a 0% deposit mortgage will help.

“Economists were widely expecting this cut, bearing in mind that inflation is remaining around the MPC’s 2% sweet spot. However, we’ll be interested to read the Bank’s latest quarterly economic forecast to see what effect they think that the increased Government borrowing that Chancellor Reeves announced in the Autumn Budget will have on future rate cuts.

“Moving forward, we’ll probably see fewer cuts than previously expected due to the extra inflationary pressures, rises to the national living wage and employers’ national insurance.”