Have interest rates peaked and what next for savings and mortgages?

This is Money Podcast

This is Money

Business News, Business, Investing, News

4.1 • 650 Ratings

🗓️ 22 September 2023

⏱️ 51 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

And suddenly they stopped. After 14 interest rate rises in a row, the Bank of England stalled and kept base rate on hold.

A lower than expected inflation number and slew of economic reports indicating the heat was being taken out of the economy were credited with staying the Monetary Policy Committee's hand.

So, will 5.25 per cent now be the peak for base rate or could rates once again start to head higher from here?

And what does the Bank of England's decision to pause mean for savings rates and mortgage rates?

On this week, Georgie Frost, Lee Boyce and Simon Lambert discuss why interest rates were held, what nudged inflation down, what could happen next and what all this means for savers, borrowers and investors.

Plus, what does the government rowing back on Net Zero plans mean for electric cars, EPCs and how we heat our homes.

And finally, if your neighbours can seen into your garden and you don't like it, can you just stick up a very tall fence or do you need planning permission (and risk triggering a neighbourly battle)?

Transcript

Click on a timestamp to play from that location

0:00.0	Welcome to This Is Money podcast. I'm Georgie Frost and joining me and Simon Lambert today is Lee Boyce.
0:08.9	And coming up, they think it's all over. But is it? The Bank of England put the brakes on and held interest rates steady.
0:15.1	So have we hit the peak? Should you grab a savings fix before they vanish? Will mortgages get cheaper?
0:20.4	And are we on the way back to the old normal? asked Simon.
0:24.2	Also today, the ban on sales of new petrol and diesel cars has been moved from 2030 to 2035,
0:31.6	so is that it for EVs?
0:33.4	And because no neighbourly dispute is too trivial for us to cover,
0:36.6	can we put up a tall garden fence to stop the neighbours looking in?
0:40.2	Don't forget, he's up to date with all the latest breaking money news.
0:43.0	Just go to this ismoney.co.uk or download the app.
0:46.8	Don't forget, you can stay on top of what's going on in the markets by tuning in to the Digest and Invest podcast by Itara.
0:52.5	Go to your regular podcast platform and listen on the go.
0:55.2	Digest and Invest by Itara, the podcast for those interested in trading and investing.
0:59.7	But first. So the peak, all just a pause. The Bank of England held interest rates this week at 5.25% off the back of some better than expected inflation news.
1:09.6	But by golly, it was a close run thing, five to four against the 15th consecutive hike.
1:16.1	Some respite for those on track of mortgages, at least.
1:19.0	Lee, Boyce, start with you.
1:20.3	What did you make of the decision?
1:21.8	I don't think it was all that surprising in the end, actually, Georgie.
1:25.5	I think when we had the inflation figure that came out a day before
1:28.3	showing a relative surprise easing at 6.7% rather than the 7.1% that had been sort of widely forecast.
1:37.0	I think that's what played into the hands of, you know, the MPC members that might have been tempted to do what, you know, to pause more than put another hike. So I think that, you know the mpc members that might have been tempted to do what you know to pause more than
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from This is Money, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of This is Money and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.