Bank of England increase base rate - Commentary from the CEO of My Community Finance
The Bank of England has raised interest rates to 5.25%, marking the 14th consecutive increase. This move will keep borrowing costs high for the next two years.
According to the Bank's latest projections, the UK is expected to steer clear of a recession. These forecasts also indicate that the government is on track to fulfill its commitment of reducing inflation by half by year-end. However, the forecast also suggests that interest rates will need to be maintained at elevated levels for an extended period.
Founder and CEO of My Community Finance, Tobias Gruber, said: “Although this hike in the base rate brings more misery for borrowers, it emerges as a silver lining for savers, providing banks swiftly pass on rates to their customers.
“Justifiably so, the FCA is piling on the pressure for high street banks to treat customers more fairly. It's high time for banks to cease profiting from interest rate fluctuations while dragging their feet in extending these benefits to their customers.
“Savers should compare savings account options across various banks and financial institutions. Look for accounts that offer competitive interest rates and favourable terms to make the most of the current 15-year high-interest rates”.
About Tobias Gruber
Tobias Gruber is the founder and CEO of My Community Finance. For the past 30 years, he's been a prominent leader in investment banking and asset management for some of the sector's most renowned banks, including Credit Suisse, SwissBank, JP Morgan and Morgan Stanley.
Fast forward to 2018, Tobias launched My Community Finance to provide a platform for the financially excluded, helping people to get back on their feet with ethical and socially responsible lending. Within 36 months, My Community Finance has become accountable for 25% of borrowing within the credit union sector.
Tobias has experienced first-hand how certain areas of the finance world are ripe for change and is a passionate advocate for using fintech to help people and solve society's economic problems.
About My Community Finance
My Community Finance is on a mission to transform how its customers manage their money by giving them access to ethical alternatives through two of the U.K.'s biggest credit unions: My Community Bank and Castle Community Bank.
Credit unions give a lifeline to customers who struggle to access mainstream credit by introducing them to financial communities that don't prioritise profits and whose unique regulatory structure means they can offer fairer rates.
Based in London and launched in 2018, My Community Finance is fully authorised and regulated by the Financial Conduct Authority and is a trading name of Amplifi Capital (U.K.) Limited, which has offered ethical and responsible financial products to near-prime consumers since 2015.
