BoE outlook: Inflation data reassures but November rate cut hangs in the balance – Equifax UK comments
Paul Heywood, chief data & analytics officer at Equifax UK, comments ahead of the Bank of England’s interest rate decision on 06 November:
“While the latest CPI figures came in lower than feared, inflation remains stubbornly high and Bank of England policymakers may be wary about adjusting rates so close to the Autumn Budget. A November rate cut therefore hangs in the balance and borrowers could find themselves waiting until December, at the earliest, for another cut.
“Affordability remains a pressing concern for UK consumers. Eleven percent of new mortgages in the first half of the year were tied to 35+ year loan terms to help spread out repayment costs, compared to just 3.5% at the start of rate increase cycle1 in 2022.
“Equifax will continue to work alongside its lending partners to help them understand borrower creditworthiness and affordability while also supporting borrowers to understand their financial health position.”