“Central banks seem to follow market sentiment, rather than drive it”, says LiveMore’s Simon Webb

Simon Webb, managing director of capital markets and finance at LiveMore, commented: “The Bank of England’s decision to hold the base rate at 5.25% is no surprise. Central banks seem to follow market sentiment, rather than drive it. Consequently, they frequently leave rate changes too late – this happens across the UK’s Bank of England, the U.S. Federal Reserve and the European Central Bank.

“Fortunately, however, yesterday’s welcome drop in inflation has spurred a drop in swap rates, which could help lenders give their customers better deals. Additionally, we’re seeing a more positive housing market.”

Published: 21 March 2024