MorganAsh comments on BoE MPC decision

19 June 2025

Andrew Gething, managing director of MorganAsh, said:

“While today’s decision is far from a surprise, it demonstrates just how quickly the conversation has changed around the future path of interest rates. After last month’s cut, the view was there was much more to come. The consensus is still downward, but bold predictions of as many as three more cuts this year now seem pie in the sky. As is often the case, fierce inflation has caused traders to scale back their predictions, proving that plotting the future path of interest rates can still be a fool’s errand.

“All in all, it makes it incredibly difficult for households to confidently look ahead – especially those which have seen disposable incomes decrease – and are experiencing sustained financial pressures on all fronts. With the implications this can have on health, well-being and living standards, there’s no doubt a high proportion of these customers will be considered vulnerable. We must focus on the here and now, rather than promises of the future – and make sure we are properly supporting all clients – particularly those who are in difficulty.

“Not only is this is complex, we know from the FCA that many firms are still not equipped to do this properly. As interest rates remain elevated, it’s a reminder that firms need to know who these customers are – and be alive to the challenges and outcomes they are facing. This requires good tech, robust data and proper processes.”