The Bank of England has opted to keep the base rate unchanged at 4.25% following today’s Monetary Policy Committee (MPC) meeting, maintaining a cautious stance amid persistent inflation concerns.
The decision reflects the committee’s view that more time is needed to assess the direction of price growth and economic activity.
While headline inflation has continued to fall, core measures remain stubbornly high, and services inflation in particular has shown limited signs of easing.
This marks the second cut in succession following May’s decision to lower the rate to 4.25%.
Attention now turns to the August meeting, with investors watching closely for signs of further easing later in the year.
Reaction:
Nicholas Mendes, mortgage technical manager and head of marketing at John Charcol:
“The Bank of England has kept interest rates on hold at 4.25%, in a move widely expected by markets and one that speaks to the increasingly muddled backdrop facing policymakers.
“Headline inflation held steady at 3.4% in May, as falling fuel and air fare prices were offset by stickier components elsewhere. But beneath the surface, the picture is still sticky.
“Services inflation, a key measure the Bank keeps a close eye on, eased to 4.7%, still some way off the 2% target. Core inflation held firm too, coming in at 3.5%.
“Wage growth remains strong, and although the jobs market has started to cool with unemployment nudging up to 4.6%, there is not yet enough to convince the Bank that underlying inflationary pressures have been fully contained.
“Then there is the global picture. The threat of fresh energy shocks, particularly if tensions in the Middle East escalate further, adds another layer of risk the Bank cannot afford to ignore. Any disruption to oil flows through the Strait of Hormuz could quickly feed through to prices at the pump and the CPI.
“Markets still expect a cut or two later this year, possibly as soon as August. But for now, the MPC is sitting tight, and that feels like the sensible choice.”
Hugo Davies, chief capital officer and MD mortgages at LendInvest:
“A hold at 4.25% was widely expected – markets were pricing in an 85% probability this week – and it reinforces a growing sense of stability for those either investing in, letting or developing real estate.
“With core inflation easing and CPI now sitting at 3.4%, the Bank can breathe a sigh of relief as it yet again muddles through another batch of datapoints without a nasty surprise.
“We expect to see the next cut in August (markets pricing in 90% probability), acting as an adrenaline shot in the post-summer window.
“Stronger, more constructive guidance from the Bank about the direction of travel, given a recent GDP shock and structural weakness in the labour market, will build confidence, increase transaction levels and deliver more homes.”
Alpa Bhakta, CEO of Butterfield Mortgages Limited:
“Investors will certainly have hoped for a rate cut today, but persistent inflation and other economic indicators have made the Bank of England’s job increasingly complex.
“As such, a rate hold had become increasingly likely in recent weeks. It has been a common theme of the past two years, with the base rate falling at a slower-than-expected pace.
“Even if UK inflation runs above the 2% target, there remains a real possibility that we’ll see the base fall later this year – the question is how many cuts, and when will they come. For now, the lending sector must respond to today’s decision by doubling down on support for both brokers and investors.”
Paresh Raja, CEO of Market Financial Solutions:
“When it cut the base rate in early May, the MPC strongly indicated that further cuts would follow. But economic and political landscape, both in the UK and globally, continues to evolve at pace – pronounced turbulence and uncertainty made a hold today almost inevitable.
“But we should see the bigger picture: the base rate is 0.75% lower than it was 10 months ago, and a gradual decrease is still expected in the coming year. The challenge right now is to ensure inertia doesn’t set in within the property market while would-be buyers wait for further cuts; we have to unlock buyer demand right now.
“Lenders cannot afford to dwell on decisions from Threadneedle Street, and should focus on what they can control. With the prospect of multiple rate cuts in the second half of this year now fading, it’s vital that lenders continue to adapt their products and offerings in line with borrowers’ needs.
“If they can do that, investors should have the confidence to execute their plans, helping to unlock activity across the market despite the higher-rate environment.”
Paul Noble, CEO of Chetwood Bank:
“A hold today is the cautious choice, but leadership means more than playing it safe. The MPC’s decision will be welcomed by some, but it’s another example of cautious drift over clear direction. Holding their ground may make sense given chaotic global pressures, but it’s not the decisive leadership our economy needs.
“The economy has been through the ringer, with the Chancellor’s plan providing domestic pressures to add to those caused by the US, Russia, and beyond. However, the central bank continues to act as though inflation is the only variable that matters.
“The MPC’s lack of action piles on greater uncertainty for mortgages as well, leaving would-be buyers in the lurch. This cautious approach could lead to greater paralysis when what markets need is a catalyst. For savers, the risk is time – it’s vital to find to best returns, to stay flexible, and to stop letting handwringing on Threadneedle Street dictate their outcome.”
George Holmes, managing director of Aurora Capital:
“Today’s decision to hold rates won’t surprise anyone, but it’s still a missed opportunity. Small firms have been managing high borrowing costs for a long time, and today’s decision offers little sign that conditions will improve anytime soon.
“Cuts are still expected later this year, but the further they’re pushed back, the more strain it puts on businesses already holding off on decisions.
“And the longer the wait, the greater the fear that those cuts may not come at all.
“The Bank says it needs clearer signals before it acts. But small firms are already working against a backdrop of high costs, fragile demand, and growing uncertainty.
“They need direction and decisive action, not delay.”
Richard Pike, chief sales and marketing officer at Phoebus Software:
“Today’s decision by the Bank of England to hold interest rates at 4.25% is not unexpected given the persistent inflationary pressures and broader economic uncertainty both globally and here in the UK. While some had hoped for a continued trajectory of rate cuts following May’s reduction, it’s widely expected they will come later in the year.
“The MPC is clearly taking a cautious approach in light of stubbornly high inflation, particularly in essential areas like food, and ongoing global tensions impacting commodity prices.
“For the mortgage market, a pause in rate cuts may not move the dial significantly in the short term.
“Fixed mortgage rates have already stabilised in recent weeks, and today’s hold is likely to reinforce that pattern. However, for lenders and borrowers alike, the prospect of rate cuts being delayed further underlines the importance of planning for a higher-for-longer interest rate environment.
“The market has adapted remarkably well over the past year, and technology will continue to play a key role in helping lenders maintain efficiency and flexibility. While today’s decision may temper expectations, it also reinforces the need for robust systems that can support brokers and borrowers through uncertain times.”
Ben Thompson, deputy CEO, Mortgage Advice Bureau:
“The Bank of England was always going to play it safe this time around, with the decision to hold the base rate at 4.25% widely expected.
“There are still plenty of positives to be taken from this, especially for those who think their financial situation may set them back from getting a mortgage.
“From 100% lending options now available, to mortgages that stretch your borrowing power, there are so many ways to get on the ladder – regardless of the size of your income or deposit.
“It’s also good to look at how far we’ve come, with the current base rate being the lowest we’ve experienced since May 2023. We can still anticipate cuts later in the year, although how soon these will arrive remains to be seen.
“As always, speaking to a broker should be your first port of call. Their expertise is invaluable in helping you get mortgage ready and navigate current market conditions with ease.”
Alan Davison, chief commercial officer of Afin Bank:
“It’ll be interesting to read the minutes from today’s MPC meeting, because while a Base Rate hold was widely expected, there are a lot of factors that would suggest a cut is needed, so it’ll be fascinating to see what kind of split there was between members.
“At home inflation remains stubbornly high, while internationally the risk of war in the Middle East is adding to global pressures already stoked by the war in Ukraine and US tariffs, damaging confidence.
“Significantly, economists and commentators are also split on how quickly and how deeply the Bank of England will cut the Base Rate, with some predicting another three cuts by the end of the year.”
Mike Randall, CEO of Simply Asset Finance:
“The decision to hold rates may offer some short-term stability, but for most SMEs it doesn’t change the real challenge: securing affordable finance that meets their growth and investment ambitions.
“The Government’s recent review on SME lending finds most businesses still face barriers that reflect the realities of running a business – from rigid credit criteria and standardised structures to a lack of funding.
“As the Government now develops its small business strategy, lenders need to work together to establish a more flexible, practical, and holistic approach – not just offering tailored solutions that help unlock the potential of the UK’s small business economy, but both broadening and strengthening the lending ecosystem.”
Rob Clifford, chief executive of Stonebridge:
“By holding rates today, the Bank of England is exercising caution amid mounting risks — particularly as renewed Middle East tensions threaten to push energy prices, and therefore inflation, sharply higher once again.
“This decision sends a clear message that the Bank remains firmly focused on reining in inflation despite signs of a weakening UK economy. But we see this pause as temporary.
“Though inflation risks are rising, the Bank appears confident the recent uptick is temporary and will ease in the months ahead.
“For that reason, we continue to expect two rate cuts this year – likely in August and November – potentially pushing the base rate below 4% for the first time since early 2023.
“Borrowers may have to wait a little longer to see if this translates into lower mortgage rates, although we think that outcome is very likely.
“With the outlook shifting daily, brokers need to be proactive in contacting their customers. The market is confusing, and many borrowers will be seeking clarity and reassurance. Expert advice will be vital in helping them make informed decisions in confidence.”
John Phillips, CEO of Just Mortgages and Spicerhaart:
“The decision to hold interest rates is not unexpected and is certainly in line with the bank’s careful and gradual approach.
“Yesterday’s news on inflation wouldn’t have been enough to sway them, especially with current geopolitical tensions and in light of further escalation in the Middle East and the potential ramifications this could have on prices and global trade.
“While the changing narrative around interest rate expectations and the number of cuts isn’t entirely helpful and goes some way to unsettle borrowers, we can take comfort that the consensus is still that interest rates will be cut.
“While careful and gradual is fine to a point – especially given the bigger picture at play – an economy on life support requires some clear action and hopefully that will mean more than one cut later in the year. It will improve affordability, drive homeownership and deliver economic growth.
“In the meantime, the message to potential borrowers is that right now, lenders are willing to lend, options are available to support all buyers and brokers stand ready to help them navigate the market.
“We’ve been encouraged by demand across both EA and financial services businesses, but know there are still plenty with the appetite to buy, but just need that extra support.”
Joe Phelan, business savings account expert at money.co.uk:
“The Bank of England has held the base rate at 4.25%, resisting pressure — for the time being, at least — to cut in the face of stubborn inflation and global volatility.
“While this offers a moment of stability, many experts still expect further cuts before the year is out.
“Some forecasts suggest a fall to 3.75% by year-end, with the potential for rates to reach 3.5% in early 2026 – though, as always, these forecasts are liable to shift depending on how the economy develops in the coming months.
“For small business owners, now’s an ideal time to take stock.
“Whether that’s moving your savings to a more beneficial account or building a buffer against future economic shifts, switching to a more rewarding account today could help your business thrive tomorrow.”
James Burgess, head of commercial and insolvency expert at Atradius UK:
“While the decision to hold rates at 4.25% was widely expected, given above-target inflation at 3.4% and high wage growth, it creates a challenging environment for UK companies.
“High borrowing costs and lingering tariff uncertainty continue to hamper investment and growth, particularly for SMEs. Businesses are still navigating elevated operating costs and cautious consumer spending.
“To navigate the uncertainty ahead, businesses should take proactive steps to protect their operations. Strengthening cash flow, reviewing supply chain resilience, and considering trade credit insurance can provide greater stability and peace of mind during what remains a challenging period.”
Adam Ruddle, chief investment officer at LV=:
“The Bank of England’s decision to hold rates at 4.25% is as expected and a continued signal of the Bank’s comfort to gradually reduce the rate, rather than a sign that the easing cycle has ended.
“The Bank will be balancing a weakened economy with falling employment against headline inflation remaining above the Bank’s 2% target at 3.4%. Given the escalation in the Middle East, the Bank will be carefully monitoring the long-term impact on oil prices which could increase the risks of stagflation where inflation returns amidst a weak economy.
“At this time, we still expect the Bank to resume their rate cutting over the summer– though many will wish they had not waited.
“For mortgage holders, the decision to hold rates will be a bitter pill to swallow. According to LV’s Wealth and Wellbeing research, more than two in five (41%) mortgage holders are worrying about the rising prices of day to day household items and a quarter are specifically worried about the impact of rates on their mortgage repayments.”
Steve Cox, chief commercial officer at Fleet Mortgages:
“Today’s decision by the Bank of England to hold Bank Base Rate (BBR) was widely expected, particularly in light of global uncertainties and the need for continued reassurance inflation is sustainably on its way back to target.
“With this week’s CPI figure holding at 3.4%, it’s understandable the MPC is choosing to proceed with some caution. That said, today’s decision has raised the prospect of a cut at the next meeting in August but again, a lot can happen both internationally and domestically between now and then, which means it’s very difficult to predict this seven or so weeks in advance.
“It’s important to note, however, that in the buy-to-let market and other mortgage product sectors, pricing is not generally dictated just by movements in BBR, and we’ve seen a continued fall in swaps having a bigger impact.
“At Fleet, we’ve recently made a number of reductions to our buy-to-let product rates, and will continue to look at opportunities to continue this. For advisers and their landlord clients, this means opportunity is already here.
“Improved affordability, greater remortgage potential, and renewed portfolio investment are all on the table. Today’s hold does not stall that progress, it simply reinforces the importance of acting strategically and taking advantage of funding opportunities as they are presented.”
Colin Bell, founder and COO of Perenna:
“Steady ahead from the MPC. While some may have hoped for a cut to stimulate the economy, the Bank of England has decided to take a more cautious approach.
“Inflation remains stickier than anticipated and, while economic growth is a top priority, it’s hard to prioritise while consumers contend with rising prices.
“That said, lenders are closely watching, and some have been slowly reducing their rates. Many lenders have already priced in further reductions down the line; this may temper their views.
“For most consumers, however, high house prices are the core driver of our affordability crisis, not marginal changes in the interest rate. Even a full base point cut wouldn’t reignite the market for those barely scraping together a deposit.
The mortgage industry is constantly rolling out new innovative products to help navigate this problem, and the FCA has clearly signalled that it’s open to new ideas – but we need to move quicker.
“We need the legislative infrastructure in place to facilitate improvements in homeowners’ accessibility, and real reform on affordability rules with a market free to deploy new and creative solutions.”
Nick Leeming, chairman of Jackson-Stops:
“Holding rates today reflects the air of uncertainty that has entered the UK economy. A combination of geopolitical tensions, as well as continuing inflationary pressures at home, has resulted in any rate reductions being deferred until later in the year.
“The economy, while not in unchartered territory, is having to adjust in real time to manage inflation and reassure consumers.
“For the property market, today’s decision to hold rates will not immediately effect mortgage rates on the market but it may cause slight hesitancy to enter into the buying process.
“Committed buyers will not be knocked off course by the Bank of England’s actions today, the market remains in a robust position with completions able to take place.
“Further proof of the market’s resilience is being seen across the Jackson-Stops network with a notable uptick in new listings in May compared to two years ago.
“High volumes of buyers and sellers are willing to press on and take their next step irrespective of wider economic headwinds.”
Tony Hall, head of business development at Saffron for Intermediaries:
“Today’s decision to maintain the base rate is certainly not a surprise. Recent commentary from policymakers pointed to caution around acting too soon, particularly with inflation still hovering above target.
“Broader economic shifts, including the Chancellor’s spending review, may also have supported a more measured stance.
“These domestic and global factors have led many lenders to adjust their mortgage pricing, with some products still available below 4% while others have edged slightly higher.
“Even so, there are still plenty of reasons for buyers to feel optimistic. The summer months typically bring increased market activity, and the Government’s multi-billion pound pledge for affordable housing signals a commitment to addressing long-term supply.
“As we move into the second half of the year, the combination of seasonal momentum and a competitive lending environment offers encouraging signs for those looking to buy.”
Frances Haque, chief economist, Santander UK:
“As expected, base rate has been held at 4.25%. Despite the anticipated hold, we have seen many lenders cutting mortgage lending rates in the last week – Santander included.
“Our forecasts suggest that we’re still likely to see two more base rate cuts over the coming year – most likely ending 2025 at 3.75% – with this being “priced in” to current mortgage rates.
“Aspiring homeowners and those already on the ladder could expect to see mortgage rates continue to hover between the top end of the threes or lower end of the fours. For this to change significantly we’d need to see changes in economic data – and as ever, that could see mortgage rates go up as well as down.
“We saw strong growth in Q1 followed by April’s GDP data showing a fall of 0.3% month-on-month. As has been the trend for the last few years, risks to the outlook remain there is the potential for rising oil prices on the back of the crisis in the Middle East and increased market volatility.
“Further loosening in the labour market with unemployment increasing to 4.6% and wage growth falling a little more than expected has also been seen, but wage growth is still significantly above rates compatible with a 2% inflation target.
“While these may pose bumps in the road for buyers, the traditional increase in home moving we see during the summer will likely continue to drive demand for properties as we enter Q3 which, coupled with affordability improvements, means we expect the 2025 mortgage market will continue to grow.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman:
“With inflation and wage growth stubbornly high while concerns about the economy here and abroad remain, the Bank of England clearly found it unsafe to reduce base rate.
“The inevitability of the no change decision will have a limited impact on an already fairly subdued housing market as it has already been largely factored in by buyers and sellers.
“However, relaxed lender stress testing is improving affordability and having a positive knock-on effect on activity, particularly for first-time buyers.”
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts:
“Another interest rate cut was not expected this month given the inflation figures – although one questions how effective rate rises are at controlling inflation when so much of the pressure stems from external factors such as the war in Ukraine.
“We had hoped that the Bank of England would have cut rates by 50 basis points last time around to stimulate growth, as the economy feels stagnant and at risk of sliding into austerity. This latest hold in base rate won’t help that.”
Simon Webb, managing director of capital markets and finance at LiveMore:
“The Bank’s decision to hold interest rates today is a sensible move considering current inflation levels and ongoing geopolitical uncertainty.
“While borrowers may be eager to see further cuts, today’s hold helps to reinforce market stability and gives lenders and intermediaries the space to plan with greater confidence.
“For the later life lending market, this consistency is welcome. After a period of significant economic volatility, a steady rate environment allows brokers to have more informed conversations with clients about their long-term financial plans.
“We remain optimistic about the outlook for later life lending. With demand growing and awareness increasing, there are real opportunities to support older borrowers with tailored, flexible solutions — particularly as the market prepares for the potential of further rate cuts later in the year.”
Andrew Gething, managing director of MorganAsh:
“While today’s decision is far from a surprise, it demonstrates just how quickly the conversation has changed around the future path of interest rates. After last month’s cut, the view was there was much more to come.
“The consensus is still downward, but bold predictions of as many as three more cuts this year now seem pie in the sky. As is often the case, fierce inflation has caused traders to scale back their predictions, proving that plotting the future path of interest rates can still be a fool’s errand.
“All in all, it makes it incredibly difficult for households to confidently look ahead – especially those which have seen disposable incomes decrease – and are experiencing sustained financial pressures on all fronts.
“With the implications this can have on health, well-being and living standards, there’s no doubt a high proportion of these customers will be considered vulnerable. We must focus on the here and now, rather than promises of the future – and make sure we are properly supporting all clients – particularly those who are in difficulty.
“Not only is this is complex, we know from the FCA that many firms are still not equipped to do this properly.
“As interest rates remain elevated, it’s a reminder that firms need to know who these customers are – and be alive to the challenges and outcomes they are facing. This requires good tech, robust data and proper processes.”
Matt Harrison, commercial director at Finova Broker:
“While today’s hold may feel underwhelming to borrowers hoping for immediate relief, for brokers, it marks a useful moment of clarity. When rates stay flat, brokers can shift out of reactive mode and into strategic guidance — helping clients plan with more confidence, rather than second-guess the next move.
“That said, this isn’t a return to calm — it’s a holding pattern in a high-stakes environment. Lenders remain cautious, product windows are tight, and clients are still navigating affordability thresholds.
“The brokers who’ll thrive in this landscape are the ones who can adapt fast: spotting opportunities in niche products, helping clients remortgage at the right time, and translating macro data into personal impact.
“We’re focused on giving brokers that edge — whether it’s through smarter sourcing tools, real-time affordability tracking, or better CRM insights. A flat rate doesn’t mean a flat market — and the right tech can turn stability into momentum.”
Mark Harris, chief executive of mortgage broker SPF Private Clients:
“The Bank of England has held rates at 4.25 per cent, which comes as no real surprise with CPI inflation at 3.4 per cent in the year to May, down only slightly from 3.5 per cent in April. With only a two-way split in voting this time around (three members voted for a quarter-point reduction while six voted for a hold), this is encouraging, suggesting that another reduction could come at the August meeting.
“However, with the Bank opting for a cautious approach, it has missed a real opportunity to be bold by cutting rates again. This would have sent out a strong message, helping boost the housing market and wider economy, particularly now that the stamp duty concession is no longer available.
“There is some good news for borrowers though in that lenders have reduced mortgage rates and eased criteria in recent weeks. This rate hold was largely expected by the markets but if Swap rates fall, this will enable lenders to price their fixed-rate mortgages more keenly, easing borrowers’ affordability concerns.
“Those looking to take out a new mortgage or refinance in coming months should plan ahead as much as possible, seeking advice from a whole-of-market broker. We expect the MPC to continue on the anticipated path for base rate with further reductions in coming months but what can’t be guaranteed is where rates end up, nor the pace it takes to get there.”
Ryan McGrath, director of second charge mortgages at Pepper Money:
“The decision to hold rates reflects an evolving economic picture. A combination of high inflation, international tensions, rising unemployment and the prospect of rising energy costs is creating a challenging headwind for markets.
“Today’s announcement will leave low, fixed-rate mortgage holders clinging tightly to their existing deals. However, the reality is that many people’s situations or lifestyles may have changed during this time.
“Secured loans can enable households to keep their current mortgage rate in place while also unlocking the funding they need to make improvements to their homes.
“For the right person, secured loans can offer a flexible and cost-effective solution to make home improvements, consolidate debts, or pay unexpected bills. Homeowners considering their finances should speak to a broker to understand if a secured loan could be the right option for them.”
Iain McKenzie, CEO of The Guild of Property Professionals:
“The Bank of England’s decision to hold the base rate at 4.25% is a clear signal of caution in the face of conflicting economic data.
“While the move may disappoint some borrowers hoping for further relief, it is a pragmatic response to the difficult balancing act of nurturing economic growth while reining in inflation.
“With May’s inflation figures coming in higher than expected at 3.4%, the Monetary Policy Committee has understandably opted for a ‘wait and see’ approach.
“GDP growth in Q1 of 0.7% has likely given the Bank confidence that the economy can withstand current rates, allowing it to prioritise the fight against inflation without risking a slowdown.
“For the housing market, this decision provides stability rather than a new stimulus. The benefits of the May rate cut are still filtering through, with recent sub-4% mortgage headlines helping boost market activity to a four-year high for agreed sales.
“This ongoing momentum, coupled with lenders relaxing affordability criteria, means the market is well-placed to continue its resilient performance.
“While a further cut would have been welcome, today’s hold ensures the market remains on a steady footing.
“The balance between buyer demand and a healthy increase in housing supply will continue to support transaction levels while keeping price growth in check. All eyes will now be on the next set of inflation data to signal the Bank’s future direction.”
Tomer Aboody, director of specialist lender MT Finance:
“Everyone knows that stamp duty is the biggest obstacle for the housing market. Whenever there is an increase in stamp duty rates, market activity slows and sometimes stagnates.
“On the other hand, with a downwards shift in stamp duty comes a big influx of buyers and sellers.
“With the newly-adjusted higher stamp duty rates, we are seeing a relatively stagnant housing market as buyers await another interest rate reduction to help cancel out the higher stamp duty with lower mortgage payments.
“With the current economy not at its strongest, the Bank of England has a dilemma on its hands – does it reduce rates further now, since another reduction can increase inflation?
“With the housing market being one of, if not the most crucial, economy drivers in the UK, any base rate reduction will increase market activity, which in turn increases consumer confidence.
“Another rate cut is surely on the cards for 2025, even though the Bank wasn’t quite ready to make it this time around.”
Sharon Beedham, relationship director at ONP Solicitors:
“With inflation flat and geopolitical noise fuelling rate-cut rumours, it’s telling that the Bank chose caution over reaction.
“That speaks to how fragile the economic balance remains — but it also underlines that the recovery is on firmer ground.
“In the current climate, a steady hand from the Bank of England offers more value than a rushed rate cut.
“What’s especially encouraging is the spike in first-time buyer activity despite the end of stamp duty incentives. That shows that real demand is still there — not just stimulus-driven. For many, consistency is more empowering than volatility.
“A held rate, while not headline-grabbing, gives movers a window to act with more certainty and less fear of shifting sands beneath them. And just as importantly it provides the industry with the space to plan, scale, and improve service without being blindsided by policy volatility.”
Nathan Emerson, CEO of Propertymark:
“There has been much talk of base rate cuts potentially happening across the summer months, and although today hasn’t delivered any dip, it remains positive to witness overall stability.
“This is especially prevalent when you consider the vast turbulence we have seen across the wider global economy.
“As we head further into the summer months and as the housing market hits its seasonal busy period, if conditions permit, it would be positive for consumers to have that much-anticipated catalyst of further cuts in base rate to help boost affordability and confidence.”
Kevin Roberts, managing director of L&G’s Mortgage Services:
“I don’t think too many people will be surprised at the base rate holding at 4.25%, but there’s still plenty of positives in the market.
“We’re seeing more sub-4% deals on offer, along with some innovative products, with higher LTVs and low, or no deposits.
“As we move into the peak summer season, now’s a good time to consult with a professional mortgage adviser to make the most of what the current market has to offer.”
David Morrison, senior market analyst at FCA-regulated fintech and financial services provider, Trade Nation:
“The Bank of England has held interest rates at 4.25%, pausing after May’s cut as it monitors slowing economic growth and still-elevated inflation, which stood at 3.4% in the year to May.
“While further rate reductions have been signalled, most analysts now expect these to come later in the year, as the Bank weighs the need to support growth against its 2% inflation target.
“Sterling fell sharply on the news. This reflects the fact that one more member of the MPC voted to cut rates than expected, thereby increasing the probability of another rate cut at the Bank’s next meeting in August.
“But there’s a lot of economic data due before then. So overall, investors will be wary of reading too much into this.”
James Tothill, investment specialist at Wesleyan:
“The Bank of England is clearly still taking a ‘wait and see’ approach.
“The outlook is still uncertain, but the market is already starting to predict that another cut is on the cards when the MPC meets again in August.
“A drop in rates might strengthen some clients’ appetite for increasing equity investments. But advisers might also find that some clients are more nervous around the market given recent volatility.
“Firms will need to be prepared to manage this nervousness to ensure clients continue to find suitable solutions that benefit their long-term plans.
“This might include increasing proactive communications about current volatility drivers or using specialist tools like on-platform smoothed funds.”
