Kevin Brown, savings specialist at Scottish Friendly comments on March MPC base rate decision
“It’s unsurprising that the MPC has opted to hold the base rate. All signs are that inflation is heading in the right direction, albeit slower than many may have anticipated. The reported fall in the inflation rate to 3.4% this week was a positive sign that the downward pressure placed on price growth by higher interest rates is having the desired effect.
“However, the likelihood is that the MPC won’t start to cut the base rate until they are confident that inflation is well and truly below its target threshold of 2%. Many are speculating that will happen in the summer and so are predicting that the pruning of base rate will begin from June onwards.
“The Monetary Policy Committee (MPC) raising the base rate clearly has had some effect. But that battle continues and there is still plenty at stake for consumers, homeowners, and the wider UK economy. All eyes will now be on the forthcoming MPC announcement on Thursday.
“While base rate remains at 5.25% cash savers will still be able to access savings accounts with attractive rates. But that isn’t going to last forever. For those considering the best home for their money over the medium to long term now might be the time when they start to consider investment options as the high best buy cash rates on offer will start to drift downwards.”
Contacts for more information
Kevin Brown, PR & Communication, Scottish Friendly
07512194336
Editors notes:
Remember that the value of investments can go down as well as up and you could get back less than you paid in.
Past performance is no guide to future results.
Tax treatment depends on individual circumstances which can change in the future.
About Scottish Friendly
Scottish Friendly is a leading UK mutual life and investments organisation. It provides investors and their families with a wide range of investment and protection solutions and provides life and investment products and services to other financial organisations.
Scottish Friendly has roots stretching back to 1862. Established as the City of Glasgow Friendly Society, its name changed in October 1992 when it took over Scottish Friendly Assurance.
In recent years Scottish Friendly has significantly restructured its business. The Group has flourished through a three-part growth strategy of organic growth, mergers and acquisitions, and business process outsourcing.
Scottish Friendly, Galbraith House, 16 Blythswood Square, Glasgow, G2 4HJ
Scottish Friendly Assurance Society Limited. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Scottish Friendly Asset Managers Limited. Authorised and regulated by the Financial Conduct Authority.