The Bank of England has today left rates on hold, at 4.5%. At its meeting ending on 19 March 2025, the MPC voted by a majority of 8–1 to maintain Bank Rate at 4.5%.
One member, Swati Dhingra, preferred to reduce Bank Rate by 0.25 percentage points, to 4.25%.
Newspage asked people from all corners of the UK business community for their views on the decision.
Emma Jones, Managing Director at Whenthebanksaysno.co.uk said, “Though the decision to leave rates on hold was expected, it’s still a blow to mortgage borrowers around the UK. Many households are under immense pressure from higher interest rates while the economy is also creaking and could have done with a cut.
“The concern, as ever, is that the Bank of England will once again find itself behind the curve.”
Andrew Montlake, Managing Director at Coreco said, “It was no surprise that the Bank opted to leave rates unchanged today amidst a swirl of conflicting data 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 that 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 soon.”
Marcus Wright, Managing Director at Bolton Business Finance said, “Another poor decision by the Bank of England to leave the base rate at 4.5%. Further rate cuts are desperately needed to help boost the economy and this sluggish pace in rate cuts is hurting homeowners and businessess alike.
“Even worse, only one member of the committee voted for a rate cut. As we head into “awful April”, the signs are not good.”
Harry Mills, Director at Oku Markets said, “The Bank of England was always going to hold the Bank Rate steady at 4.5% today.
“Inflation has recently picked up, and upward pressure on prices will surely come next month with the Chancellor’s tax rises. Whether the Bank should be moving faster on lowering interest rates is a hot topic, with businesses and homeowners already feeling the pain of high borrowing costs. The economy is stuttering along, barely growing per recent quarterly GDP data, and shrinking per the most recent monthly GDP data. How much longer can businesses cope with this backdrop of fragility and high borrowing costs?”
Gabriel McKeown, Head of Macroeconomics at Sad Rabbit added, “Caution remains the maxim of Threadneedle Street, as the Bank of England stands firm on interest rates despite the market’s hope of a dovish turn that would open the floodgates on rate cuts.
“This decision from the Bank of England was understandable and not hugely surprising given the continued inflationary pressures and forecast, with an uptick to 3% in January and expectations that this could rise further to 3.7% later in the year. However, supporting a sluggish economy is going to start becoming more of a priority, especially as the full impact of the Spring Statement is digested.
“Interestingly, this vote suggests a momentary return to near-consensus within the MPC, compared to the February meeting, where two members dissented in favour of a cut. This shift indicates that the case for aggressive easing has not yet gained traction, with the majority still prioritising inflation control over stimulus and a generally measured policy approach.”
Hannah Bashford, Director at Model Financial Solutions said, “An unsurprising decision by the Bank of England to hold interest rates but a good tactic with all the uncertainty in the economy and world as a whole. It would be great to see some further reductions in the Base Rate over the coming months but above all some certainty and stability is what our clients want.”
Ranald Mitchell, Director at Charwin Mortgages added, “The Bank of England’s decision to hold rates at 4.5% was widely expected, with inflation still above target and wage growth remaining strong. While one committee member pushed for a cut, the majority are playing it safe, waiting for clearer signs that inflation is fully under control.
“For homeowners and buyers, this means mortgage rates are unlikely to drop significantly in the short term. Lenders will continue adjusting rates based on competition rather than central bank moves. Those looking to remortgage should watch fixed-rate deals closely, as cuts later in the year are possible but not guaranteed.”
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