The Bank of England has today decided to hold its Bank Rate at 4.00%, with the Monetary Policy Committee voting 7-2 in favour of maintaining the status quo.
Why they held
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Inflation remains stubbornly high at 3.8% (year-on-year), nearly double the Bank’s 2% target.
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Rising food costs and wage growth continue to add inflationary pressure.
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The Bank feels the economy isn’t yet strong enough to risk cutting rates too quickly.
Another key point: the Bank is slowing down its quantitative tightening (QT) programme. Previously, the plan was to reduce its holdings of government bonds (gilts) by about £100 billion annually — now that has been scaled back to about £70 billion.
What it means for buyers, sellers & homeowners
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Potential homebuyers: Things stay broadly steady. Mortgage rates likely won’t drop immediately, so those locking in a fixed rate now could be doing well compared to waiting.
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Homeowners looking to move: If you already have a good mortgage deal, waiting for big cuts could take time. Selling now may make sense while buyer sentiment remains stable.
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Sellers: Buyers are still sensitive to rates, so properties priced realistically are more likely to attract interest.
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Investors / Buy-to-let: Borrowing costs remain high, so rental yields are crucial. If inflation falls further, rates could ease later on.
Outlook: What to watch next
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Inflation data — if this falls steadily, the Bank will have space to cut.
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The next Bank of England meeting in November — any cuts are likely to be gradual.
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Mortgage market reaction — lenders may adjust rates based on market expectations, even if the Bank holds steady.
If you’re considering buying, selling, or refinancing, it’s worth speaking with a mortgage adviser to understand how current rates affect you, and whether locking in a deal now makes sense.