THE Bank of England, as expected, left the base rate on hold today, in a decision that financial experts said was the right one given the opposing forces of rising inflation and a weak economy, while noting the hawkish tone of the minutes could spell bad news for borrowers.
At its meeting ending on 29 April 2026, the Monetary Policy Committee (MPC) voted by a majority of 8–1 to maintain Bank Rate at 3.75%. One member, Huw Pill, voted to increase Bank Rate by 0.25 percentage points, to 4%. Last month, Threadneedle Street also left rates on hold.
Gaurav Shukla, CEO at Marlow-based Home Me Mortgages, said the decision was the right one: “Holding the base rate at 3.75% feels like the right call for now given inflation and fragile growth, as pushing rates higher risks doing unnecessary damage to the wider economy.”
Shukla noted that mortgage rates have been coming down over the past fortnight or so and said that while the direction of travel for borrowers currently looks more stable, it is by no guaranteed.
He continued: “One global shock could reprice everything quickly again. Against this backdrop, waiting for the perfect rate often costs more than acting at the right time.”
Both directions
Adam Stiles, Managing Director at London-based Helix Financial Partners, also said this was the correct decision.
He added: “The Bank of England has got it right here. The UK economy is being pulled in both directions by weak growth and rising inflation so sticking to a ‘wait and see’ approach was the best course of action.”
Graham Nicoll, Chartered Financial Planner at NCL Wealth Partners, agreed that the Bank of England leaving rates unchanged was baked in but saw the minutes as hawkish, which is not great news for borrowers.
He said: “The decision by the Bank of England to hold rates isn’t a real surprise, as markets had already moved away from expecting cuts and were even pricing in possible hikes later this year. What matters is the tone: this is a hawkish hold, driven by renewed inflation risks, particularly from energy.
“For borrowers, it means no near-term relief. Mortgage and loan costs stay elevated, and expectations of higher-for-longer rates could keep fixed deals expensive.
“For savers, it’s supportive but not game-changing and rates should hold up, but without further increases. Overall, the shift we have had is from when do rates fall to could they rise again?”
Sterling supported
Prem Raja, Head of Trading Floor at Currencies 4 You, agreed that the tone of the minutes was “more hawkish than many had hoped” but said it would at least support Sterling.
He said: “The outlook now points to rates staying higher for longer, with even a small possibility of further hikes over the coming year. That shift is helping to underpin Sterling, which is holding above 1.15 against the Euro and 1.35 against the US Dollar.
“For borrowers, it is not particularly welcome news, as mortgage rates are likely to remain elevated and could edge higher. For those investing overseas, however, the stronger Pound does at least offer some offset through improved buying power.”
Mike Staton, Director at Mansfield-based Staton Mortgages, said the Monetary Policy Committee’s decision was cautious and is unlikely to benefit either borrowers or savers.
He said: “This wasn’t a confident decision from the Bank of England but a cautious one. They’ve held at 3.75% but the minutes make one thing clear, namely that policymakers are uncertain about inflation risks.
“For mortgages, this changes nothing immediately, as rates are driven by expectations not just the base rate.
“If anything, the tone of the minutes will keep pressure on lenders because inflation could still move higher. Savers, meanwhile, are holding steady but are still losing ground in real terms.”
Wait-and-see
Tony Redondo, Founder at Newquay-based Cosmos Currency Exchange, said Threadneedle Street’s “wait-and-see” stance was understandable as policymakers “weigh a cooling domestic economy against the inflationary pressure of an energy shock triggered by the Iran war”.
The conclusion of Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, was that “Huw Pill’s sole vote to increase the base rate to 4% presents a bitter pill to swallow for borrowers, not the tonic needed for the economy”.
