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LiveMore comments on base rate remaining at 5.25%

Simon Webb, managing director of capital markets and finance at LiveMore, said: “The Monetary Policy Committee has made the decision expected by the market by keeping the base rate at 5.25%. It follows in the footsteps of the US Federal Reserve and the European Central Bank, which both kept rates on hold this month. All three of these institutions have expressed how unlikely it is that rates will fall in the coming months so the best we can hope for is no more rises in the foreseeable future.”

“Further rate rises will challenge consumers and the economy as growth is very slow with the latest GDP figure at 0.2% and the threat of recession has not gone away. More rate rises may just tip us over the edge as borrowing costs continue to rise along with the high cost of living.

“The MPC members voting reflected this sentiment too with six members in favour of no rise and three voted for an increase. This is a divergence from the previous meeting, which was much closer at 5-4 opting to hold the rate.”

Published: 02 November 2023