Rate setters to act with abundance of caution despite inflation win
Kevin Brown, savings specialist at Scottish Friendly comments on the latest inflation figures: “This inflation reading is what was expected by markets ahead of the announcement and is a significant moment as the inflation surge of the past two years has finally receded.
“Although price rise levels are now back on target, rate setters will be cautious ahead of any cut as wage rises are now strongly ahead of price increases. Taking the foot off the rate pedal too soon could reignite a wage-price spiral so it is likely policymakers will continue to act with an abundance of caution.
“Families looking for relief from rising prices will start to feel the benefit of a normalising situation, but the damage inflation has done is yet to be truly cancelled out by wage increases. Although rates are likely to be lowered very cautiously it is a good time now for savers to start considering alternatives as market rates begin to price in a falling bank rate.”
Contacts details:
Sam Prince-Mernick
07471351584
About Scottish Friendly
Scottish Friendly is a leading UK mutual life and investments organisation. It provides investors and their families with a wide range of investment and protection solutions and provides life and investment products and services to other financial organisations.
Scottish Friendly has roots stretching back to 1862. Established as the City of Glasgow Friendly Society, its name changed in October 1992 when it took over Scottish Friendly Assurance.
The Group continues to flourish through a three-part growth strategy of organic growth, mergers and acquisitions, and business process outsourcing.
Scottish Friendly, Galbraith House, 16 Blythswood Square, Glasgow, G2 4HJ
Scottish Friendly Assurance Society Limited. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Scottish Friendly Asset Managers Limited. Authorised and regulated by the Financial Conduct Authority.