Interest Rates Held at 5.25% for Seventh Consecutive Month

Andrew Lloyd , Managing Director at Search Acumen, says:

“Today’s announcement to keep interest rates at 5.25% signifies the seventh month in a row that rates have been held. Steadier rates have undoubtedly brought a calm and consistency that hasn’t always characterised our recent economic history, and that shouldn’t be undervalued. But the story we’ve heard consistently over the last few years has been about how the cost of borrowing has hampered market activity and that picture won’t change until we are seeing rates shift downwards consistently. All the indicators are that we will see some rate cutting this year which will start to build confidence and unlock growth, however with some actually predicting a small uptick in inflation towards the end of 2024, it could well be 2025 before we begin to see a bigger renewal of investment appetite in commercial real estate.”