Interest rate quote from Kevin Brown

“The inflation Grinch had a definite hand in stealing the early Christmas present of a rate reduction. Yesterday’s concerning inflation data, which showed core inflation ticking back up, made the decision to hold the base rate at 4.75% a foregone conclusion. It was, however, no less disappointing for households with a mortgage or other debt.

“With the Monetary Policy Committee (MPC) not meeting again until the 6th February, January will likely feel even longer than it usually does. And if core inflation remains stubbornly high, February may not yield much relief on rates either. The inflation Grinch threatens to steal more than just Christmas.

“Households will need to find a way to navigate this testing terrain. A buffer of savings can provide some protection against slower wage growth and rising costs. What is vitally important is finding the best option to help your savings keep pace with inflation.”