Latest Bank of England Interest Rate Decision

The Bank of England’s Monetary Policy Committee, (MPC) have today announced that there will be no change in the Bank of England Base Rate, which remains at 4.5%.

The Committee voted by 8 to 1 to maintain the status quo.

Andrew Montlake, CEO of Coreco mortgage brokers commented, “It was no surprise that the Bank opted to leave rates unchanged today amidst a swirl of differential data creating a cacophony of noise that is hard to see through.

“On the one hand you have inflationary pressures that have not abated, exacerbated by the threat of tariffs and trade wars, and on the other you have a stuttering UK economy which needs a jump start. The Bank currently has a difficult balancing act and taking some time to review more data seems a sensible option.

“That said, the economy and the general public cannot wait too much longer, and we hope that the Bank resumes their rate cutting agenda sooner rather than later. I still expect to see another two or three cuts by the turn of the year.

“It does not necessarily follow, however, that mortgage rates will reduce substantially any time soon, and it is interesting to see that two-, three-, five- and ten-year SWAP rates are converging on the 4% level. As such we expect mortgage rates to be relatively benign for the remainder of the year, with dips up and down due more to competitive pressures amongst lenders rather than any great trend.

“Those borrowers who are opting to wait and see what happens next to mortgage rates before buying could therefore find themselves without much mortgage payment upside, whilst house prices, especially in high demand areas, look likely to continue to increase.

“Trying to predict the market in this environment is fraught with danger, and all ears now will be on the rhetoric from the Bank of England that accompanies today’s decision as to any guide on what happens next.”