“This is cold comfort to the estimated 1.6mn mortgage borrowers whose existing fixed rate deals are due to end this year. All of them are still likely to face a painful jump in their monthly repayments if they move onto a higher interest rate.”
Andrew Oxlade, investment director at Fidelity International said policymakers will still find it hard to justify cutting rates.
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“The shift in rate expectations reflects this. In January, markets had expected six rate cuts in 2024 and that the first would have happened by now. Predictions today point to only two cuts, from 5.25 per cent to 4.75 per cent with the first not arriving until autumn,” he added.
alina.khan@ft.com
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