Adam Oldfield, chief revenue officer at Phoebus, says:

“It is certainly encouraging that inflation is down this month – as opposed to last month when it remained at the same level. Combine this positive trajectory with the latest uptick in GDP, and we could be forgiven for hoping for a cut in the base rate this week. But let’s not forget that, at 3.4%, inflation is still high.

I expect the Bank of England will want to see continuing signs of inflation figures slackening before they can confidently plan for a significant base rate reduction. In the meantime, we are all walking this financial tightrope together – as long as we don’t encounter any unexpected crosswinds, we should experience a calmer, more predictable year compared to last year.”