MorganAsh comments BoE MPC decision

06 February 2025

Andrew Gething, managing director of MorganAsh, said:

“The consensus for a cut to start 2025 was already high, but last month’s surprise news on inflation only increased those chances. Even so, this decision is certainly welcome, particularly among those not on fixed rate mortgages and the many families that have continued to feel burdened by persistent financial pressures.

“Rather than a case of opening the flood gates for further movement, cuts like we’ve seen today are now likely to be far less frequent. As pressures on households and individuals remain, it’s an important reminder to firms to stay close to those clients who are at the biggest risk of facing difficulties. Just recently, we’ve seen the FCA remind mortgage intermediaries, as well as the wider financial services sector, of the importance of identifying and supporting vulnerable customers as it remains committed to embedding and enforcing Consumer Duty.

“Managing customer vulnerability is undoubtedly a clear weakness for many firms. The upcoming vulnerable customer review from the FCA is likely to reiterate this. No matter the path of interest rates or the frequency of cuts, firms absolutely need to know who their vulnerable customers are and what outcomes they are receiving. Tech adoption plays a critical role in making this a reality.”