It has been announced this week that the rate of inflation has again fallen and it is now at 6.7% down from its peak of 11.1% in October 2022. Inflation is one of the measures theBank of England focuses on when deciding whether to increase the base rate. Although 6.7% is still much higher than the BOE’s 2% target, every reduction demonstrates their strategy to bring inflation under control is working.
This is the lowest rate since February 2022. The resulting steady decline of swap rates has led to many lenders continuing to reduce product interest rates which is better news for mortgage holders and potential buyers.
Although swap rates remain high in comparison to the past decade, they are now some of the lowest rates we have seen in the past year. The BOE meets again today and we will bring you news on our social media platforms on the outcome of their meeting.