Mortgage Advice Bureau has said the Bank of England’s decision to hold the base rate at 3.75% shows policymakers remain cautious, despite inflation continuing to ease.
The Monetary Policy Committee voted to keep rates unchanged at today’s meeting, opting against further cuts for now.
Ben Thompson, director of home moving strategy at Mortgage Advice Bureau, said the decision suggested the Bank was unwilling to move too quickly.
“The Bank of England has opted for the safety of the sidelines with today’s rate hold,” he said. “Despite inflation moving in the right direction, the MPC clearly isn’t ready to hit the accelerator on further rate cuts yet.”
Thompson said he still expected some easing later in the year. “That said, we still hope for a couple more cuts this year before we get close to some sort of new equilibrium,” he added.
He said the market had already factored in the decision, meaning mortgage pricing was unlikely to improve in the short term.
“Since lenders will have already priced in this latest hold, the deals you see on the shelves today are likely as good as they’re going to get for a little while,” he said. “Arguably, the smart move right now isn’t trying to wait out the market for a perfect moment that might not come: it’s about finding a deal that actually fits your life and your budget.”
Thompson said professional advice remained important for borrowers navigating the current market.
“This is where an expert adviser really comes into their own,” he said. “They do all the heavy lifting for you, looking past the headline rates to find a deal that matches your specific needs.”
