No cheer for borrowers as rates held

Greg Macvean Photography

While many will have hoped for a cut – especially those of us with a mortgage to pay – an uncertain global political and economic environment plus ongoing inflationary pressures saw that being ruled out, for now at least.

But many commentators are expecting two more rate cuts by the end of the year, especially with three of the nine Monetary Policy Committee members voting this month to reduce the base rate to 4 per cent.

All eyes will now turn to the next meeting in August to see what will be announced then and whether it will bring some more cheer for borrowers.

In a Bank of England statement following the rate decision, it said: “There remain two-sided risks to inflation. Given the outlook, and continued disinflation, a gradual and careful approach to the further withdrawal of monetary policy restraint remains appropriate.”

It added: “The committee will continue to monitor closely the risks of inflation persistence and what the evidence may reveal about the balance between aggregate supply and demand in the economy.”

You’ll notice on Page 7 that one of our long-term partners, Waverton, has officially become W1M. This follows an announcement in March that the firm was consolidating with London & Capital, providing “exceptional breadth and depth of global advice and planning, combined with institutional-quality investment management”.

W1M manages more than £21 billion in assets, placing it among the UK’s largest wealth managers. The merged firm says it aims to grow its market share, with a focus on high net-worth and ultra-high net-worth individuals, charities, and institutions. W1M said it combines the strengths of both firms to address the complex, international, and intergenerational needs of wealthy families, including cross-border advice, institutional-quality investment management, global tax and portfolio reporting.

In this issue of Scotsman Money, Sean Lowson of W1M explores the speculation that Cash ISAs are under threat and what this could mean for savers. Meanwhile, Tom Ham chief executive of Calton examines Inheritance Tax and explains why “estate planning is both an art and science”. Craig Barrie of estate agency Revere explains how he has drawn from his experience of working in Dubai to offer clients a personal service. And in our Q&A section, Andrew Sutherland of Acumen answers a query from a reader on putting shares into an ISA wrapper.

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