Interest rates held: ‘Like the government, the BoE couldn’t care less about the people’ as borrowers are ‘under immense pressure’

The Bank of England (BoE) has just left rates on hold.  At their meeting ending on 20 March 2024, the MPC voted by a majority of 8–1 to maintain Bank Rate at 5.25%.

One member preferred to reduce Bank Rate by 0.25 percentage points, to 5%.

Gary Bush, financial advisor at MortgagesShop.com said, “The Bank of England takes the coward’s way out by just leaving the base rate at 5.25% again.

“The population needed a break but they didn’t get it from a committee of ostriches. With the inflation data this week coming in lower than expected, people in the know would have seen the record insolvencies, mortgage arrears, and reliance on credit cards to make monthly bills and acknowledged that a .25%, as a minimum, would have helped households.

“Sadly, like the government, the BOE couldn’t care less about the people at the bottom of the food chain it seems.”

Ben Perks, managing director at Orchard Financial Advisers said, “Today’s decision is not just a hold, it’s a stranglehold.

“Borrowers are under immense pressure. The Bank of England seems totally out of touch with what the public are going through.

“Today was an opportunity to take the pressure off borrowers, and it’s so disappointing that they haven’t had the bottle to do it and the cost of borrowing will remain at the highest level for 16 years.

“Those in power keep talking about the 2% inflation target like it’s some sort of magical figure that will fix all the country’s problems overnight, but the reality is it’s not.

“There will still be a long way to go. So, who cares if we hit 2% in May or August when people are struggling today?

“Provide the respite people need, when they need it.”

Rohit Kohli, director at the Mortgage Stop said, “This decision is as disappointing as it was predictable.

“With the lowest inflation since September 2021, mortgage arrears increasing, personal debt reaching record levels and the economy on a cliff edge you could have been forgiven for hoping that the MPC would show some bottle and leadership to drive a confidence boost that everyone needs.

“Instead, we get more of the same caution and dithering which will forever remain when the bank is only focused on one thing, namely driving inflation down to 2% come what may.”