Bank of England holds interest rate at 4.25% despite expectations of a cut

The Bank of England has once again convened to review the base interest rate. While experts have been pointing to a general downward trend for months, stubborn inflation and ongoing pressures from the cost-of-living crisis meant this meeting came with a fair amount of uncertainty. 

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In a move that surprised many, the Bank of England chose to hold the base rate at 4.25%. This decision halts the recent pattern of rate cuts, despite market predictions that another reduction was likely.  

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The Bank did, however, signal that cuts could still be on the table later in the year, depending on how the economic data evolves. 

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We spoke with Keith Ahmed, our Mortgage Protection Director, who commented: 

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"It’s disappointing to see the rate being held, especially as expectations were leaning towards another cut. But given the tough economic climate and persistent inflation, it’s not entirely unexpected. We’re watching closely to see what comes next." 

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