Monetary Policy Report – May 2024

The Bank of England’s Monetary Policy Committee met last week to set out the economic analysis and inflation projections that they will use to help make their interest rate decisions.

Here's a quick summary of what happened in last weeks Monetary Policy Committee meeting;

• As expected, the Bank of England decided to keep interest rates at 5.25%, leaving them unchanged for the fifth time in a row.
• It means the cost of borrowing remains at its highest level for 16 years.
• The Bank's Monetary Policy Committee voted 8-1 in favour of the move - the first time since autumn 2021 that no member of the panel voted to increase rates.
• The prime minister's spokesman says that, alongside the announcement of a drop in inflation, this shows the economy "has turned a corner".
• Governor Andrew Bailey says it is "not yet" the time to cut interest rates, but says "things are moving in the right direction".
• The Bank expects inflation to fall slightly below 2% by the summer.
• However, it warned that conflict in the Middle East and disruption to one of the world's busiest shipping lanes in the Red Sea poses "material risks" to prices surging again.

Click here to view the full Monetary Policy Report from the May meeting.

If you would like to discuss the current interest rates and any mortgage deals currently available on the market, contact us on 02921 672480 or email: info@grosvenormay.co.uk.