MorganAsh comments on BoE MPC decision

08 May 2025

Andrew Gething, managing director of MorganAsh, said:

“Today’s cut marks a real shift in sentiment around the outlook on interest rates as we move away from the gradual, careful approach we’ve grown accustomed to. There’s no question that geo-political tensions have necessitated this change in pace, as well as increasing concerns around UK growth. Nonetheless, the cut today and the prospect of further cuts later in the year will be celebrated by potential borrowers, current borrowers not on fixed rates and by households that have seen their health, well-being and living standards impacted by persistent financial pressure.

“Even with today’s cut, and the narrative around future interest rates, we know this doesn’t solve all problems. Inflation is far from neutralised and with trade wars brewing, we’re not out of the woods yet. The reality is that financial difficulties will be just one factor among many that could push clients into a vulnerable position. We have to stay vigilant. In its most recent review, the FCA identified that many firms still cannot monitor or take action on outcomes for vulnerable customers, or provide suitable support at the time of need. No matter the interest rate environment, knowing who our vulnerable customers are and delivering the right outcomes has to be a priority for all firms.”