The Bank of England’s Monetary Policy Committee has voted 6-3 to hold the Bank Rate at 0.5%.
Vikki Jefferies, proposition director at PRIMIS and PTFS, said: “Speculation around a base rate increase has dominated financial pages since the start of the year. The majority of commentators agree – a rate rise is not an if, but a when. While uncertainty remains around timescales, brokers need to start seeing this as an opportunity to reengage with their back-books.
“Demand for remortgages is already strong – as the latest UK Finance figures showed – and now is the prime time for brokers to further drive these conversations with the numerous borrowers who are approaching the end of their fixed rate, or who have already reverted to their lender’s SVR.”
Ed Monk, associate director for Personal Investing at Fidelity International, added: “As widely anticipated, the Bank of England Monetary Policy Committee has kept interest rates on ice at 0.5%. With recent data showing UK CPI at 2.4% – above target but below recent highs – and wage growth also being pegged back, there was no chance of a shock rise this week.
“The Bank of England does, however, appear to be standing firm on its desire to hike rates in August, even in the wake of recent weaker than expected economic data. After abandoning its widely signalled rate hike in May, Mark Carney is determined to shake off the moniker of the ‘unreliable boyfriend’ if he can.
“A majority of economists expect a rise in August and there was nothing in the Bank’s comment today to dissuade them. A tightening of the MPC vote to 6-3 indicates the hawkish direction. The Bank said that it expects the dip in GDP growth to be temporary, meaning its central case of gradual tightening from here remains in place.”