"I can’t see the BoE slowing down their plans to keep this downward trend"

Sam Norris, MD at Grand Union Finance:

“As much as the figures are obviously positive, I can’t see the BoE slowing down their plans to keep this downward trend but continuing the raise the base rate.

“5.75% by the end of this year is still highly likely, and this is looking like it will create a new ‘temporary normal’ in the mortgage world, which will not be good news for vendors and estate agents as this should keep demand for property low, and lead to a reduction in prices.

“However, we do look like we are on track for that sub-5% inflation figure by the end of the year that Rishi Sunak pledged, so I would like to think if this is achieved, base rate reductions could follow in Q2 2024.”