Just Mortgages comments on CPI inflation data

16 July 2025

Ben Allkins, head of mortgages and protection at Just Mortgages, said:

“The question on everyone’s lips is what impact this jump in inflation will have on the MPC meeting next month. While it has risen and further pressures are likely to push inflation higher throughout the year, disappointing GDP figures for a second successive month and a weak labour market are still likely to deliver the rate cut that is widely expected in August.

“It’s long been clear that the MPC faces a difficult tug of war between managing inflation and supporting economic growth. While we cannot deny that inflation is important and clearly still a challenge, current economic conditions have dictated a need to shift that balance and help pull up the nose. A cut to interest rates next month will give mortgage lenders fresh ammo to look at prices and hopefully create new opportunities for people to kickstart their purchase plans. Given the significant role that housing plays in delivering economic growth, everyone comes out a winner.”