MorganAsh comments on BoE MPC decision

07 August 2025

Andrew Gething, managing director of MorganAsh, said:

“The Chancellor has been clear that she is looking to drive economic growth – something that is arguably hard to do when interest rates sit so high. With the economy stagnating and facing stiff headwinds, a cut to the base rate is much needed to help alleviate this and encourage some positive activity. It’s a move that borrowers will welcome as will those households which feel burdened by significant financial pressures.

“Of course, much of this is based on the expectation that inflationary pressures will subside as the central bank predicts. However, if there’s one thing that inflation continues to demonstrate, it is the difficulty to confidently predict its future path – especially with trade policy proving so uncertain and clear challenges on our own shores. For financial services firms, there will still be a need to stay close to their clients – particularly those in difficulty or with characteristics of vulnerability.

“The challenge remains that many firms still cannot identify who these customers are and therefore cannot provide adequate support or facilitate positive outcomes. Firms absolutely need to equip themselves with the tools and technology to properly respond to the growing need within their own customer base, regardless of the path of inflation or interest rates.”