00:00 I think there's still nervousness around inflation and we saw the Fed in the US earlier this
00:08 week keeping interest rates at the same level. So that, you know, it is critical that the
00:13 government or the Bank of England gets the inflation rate to 2%. Now there's optimism
00:20 that that is achievable.
00:21 Just a few days ago, the Bank of England made the decision to hold interest rates at 5.25%
00:29 level the fifth time in a row, with assurances from the organisation that they will go lower
00:35 later in the year.
00:37 What it means in reality is that there is an expectation in the market that interest
00:43 rates will start to drop this year. I still think there's mixed opinions, but I think
00:49 that there is a political will, as much as anything else, for it to happen maybe by the
00:55 summer. That then makes people feel a bit more confident and I think it boosts optimism
01:02 within the business sector, so employment and all of that.
01:06 Many people with a mortgage across our region and indeed the whole UK will be impacted by
01:11 continuing higher rates. Those higher payments mean less to spend and support the economy
01:17 elsewhere. For savers though, it's better news after years of lean returns.
01:23 I think there's something like a million customers who are on fixed rate mortgages that are due
01:27 to mature over the coming months. So those individuals are going to keep a really close
01:34 eye on the situation.
01:35 I think from a saver's point of view, and I saw some research, 80% of savings products
01:41 are paying over inflation. So that puts a bit more money back in the saver's pocket
01:48 in real terms. And again, going back to Amelia's point, with salary increases, etc, that's
01:54 why there's a nervousness. A bit more money in the pocket might mean we spend a bit more.
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