Latest UK inflation data – advisers and mortgage brokers share their views 

by | Feb 15, 2023

Share this article

inflation

Following the January inflation data published this morning, which showed inflation came down to 10.1% and fell 0.6% in January, Newspage have collected the thoughts of advisers and mortgage brokers.

Philip Dragoumis, owner of London-based wealth manager, Thera Wealth Management“Prices fell in January by 0.6% month on month. Taking the last three months together and annualising them, you get inflation dropping sharply to 2.4% this year. This is great news for consumers, for borrowers and for investors in UK government bonds. The Bank of England should now pause its hiking spree and await further data. It’s fair to say that inflation in the UK has now peaked.”

Samuel Mather-Holgate of Swindon-based advisory firm, Mather & Murray Financial: “Inflation coming down faster than expected means it’s slightly less likely the central bank will hike rates by 0.5% next month, although that’s still the most accepted direction of travel. Inflation should nosedive in a few months and even be back down to the 2% target by the end of the year so bank rate cuts are coming. The sensible thing for the Monetary Policy Committee to do now would be to pause and take a breath, and release the thumb screws that are inflicting so much pain on homeowners.”

 
 

Lewis Shaw, founder of Teesside-based mortgage broker, Riverside Mortgages“It’s positive to see the inflation figures moving in the right direction but there’s still a huge gulf between where inflation should be. This won’t stop the Bank of England from hiking the base rate again on 23rd March at the next MPC meeting. It should, but it won’t. It seems the most likely hike now will be 0.25%, and we have to hope most of this is already priced in. For mortgage borrowers, this means rates will stay broadly where they are for the rest of this year. In the past few days, we’ve seen swap rates nudge up, which is probably the nail in the coffin for any meaningful fixed rate reductions. This is the new normal and we all need to accept it.”

 
 

Rhys Schofield, managing director at Derbyshire-based mortgage advisers, Peak Mortgages and Protection“Inflation is definitely falling as the global issues such as high fuel prices caused by Putin have subsided, so inflicting further financial pain on households is a bit pointless. However, pointless or not the Bank of England has to be seen to be acting tough lest the markets get spooked so it may be forced to do something and raise rates again. All that being said, with inflation on the wane, and the base rate not looking likely to peak as high as had been feared, mortgage fixed rates have steadily been coming down over the coming months anyway.”

Mark Grant of Gloucester-based business finance broker, The Business Finance Branch“While prices are still rising at 10.1% year on year, a lower figure than last month and a bigger fall than predicted in January is good for business sentiment and confidence in the months ahead. It may well reinforce the Bank of England’s forecast that we are at or near the top of the interest rate-raising cycle. Businesses need the confidence to invest and hire staff and this improving inflation figure – while still high – could contribute to that.”

 
 

Share this article

Related articles

Sign up to the IFA Magazine Newsletter

Trending articles

IFA Talk logo

IFA Talk is our flagship podcast, that fits perfectly into your busy life, bringing the latest insight, analysis, news and interviews to you, wherever you are.

IFA Talk Podcast - listen to the latest episode

x