When will the Bank Rate go down in 2024?

Some leading experts have suggested that the Bank of England (BoE) could be forced to bring forward its first planned interest rate cut sooner rather than later in 2024 if inflation drops to 2% by April.

Chief economist at Oxford Economics, Andrew Goodwin has expectations that the Consumer Price Index (CPI) will average 2.1% in 2024 – much lower than the November forecast of  3.1%, adding “Inflation is on track to return to the 2% target in April”, which is 18 months earlier than the Bank of England current forecast.

Good news for mortgages

In early January, Andrew Bailey, BoE Governor said this could be good news for mortgages, “Obviously we have had a big change in market interest rates in the last few months, and so the cost of mortgages is coming down… that is feeding through into mortgage costs, and I hope that is something that continues”.

A word of caution

However, it’s worth noting that the Monetary Policy Committee (MPC) voted by six votes to three to at its last meeting in December to maintain Bank Rate at 5.25%. The remaining three votes were in favour of raising Bank Rate to 5.5%. This is the second time in a row for such a split vote – and indicates rates may not start to fall soon.

 

Your home may be repossessed if you do not keep up repayments on your mortgage

 

26 March, 2024

More news

15 April, 2024

Only 2 in 10 UK homeowners have income protection (1), even though it’s likely to be needed at som
Don’t rely on savings or sick pay With income protection, you wouldn’t need to use savings if you were off work. Besides, 42% of working adults think their savings would only last them for up to

9 April, 2024

Getting onto the property ladder continues to be a challenge for younger generations, as 63% of firs
The cost of buying a home is significantly more expensive than a decade ago for the average FTB, who is 32 years old. For those purchasing their first home, deposits are an average of 67% higher than

4 April, 2024

Death rates are still higher than pre-pandemic¹ levels, yet 48% of adults aged 18-40 do not have li
  Research has found that, in Great Britain, a premature death can cost surviving family members an average of £195,475 over the course of ten years2. These estimates are based on the hypothetic