The Monetary Policy Committee (MPC) has voted to maintain the Bank of England base rate at 3.75% at its April meeting. The decision had been widely anticipated, reflecting a complex backdrop of geopolitical tension, higher energy costs, and persistent inflationary risk, alongside signs of a slowing economy and a softer labour market.
While the previous meeting saw a unanimous vote to hold, this time the outcome was less clear-cut. Eight members supported maintaining the current rate, with one voting for a 0.25% increase to 4.00%.
The Bank noted that CPI inflation rose to 3.3% in the 12 months to March, up from 3.0% in January and February. It also indicated that inflation is expected to rise further later in the year, as higher energy costs continue to feed through.
Commenting on the decision, David Wise of Fitch & Fitch said:
“A measured approach is important in the current environment. Holding rates, rather than reacting too quickly, supports broader market stability and confidence.”
“For borrowers, the more immediate development is lender behaviour. Despite ongoing volatility in swap rates, several major lenders have begun reducing mortgage pricing again. Barclays, HSBC and NatWest are among those making cuts this week.”
“With some tracker rates now below 4%, borrowers who do not require the certainty of a fixed rate are starting to consider a wider range of options. Understanding what is available is key.”
Planning ahead remains important
For those intending to purchase or refinance in the coming months, early engagement remains advisable. Many lenders allow rates to be secured several months in advance, providing a degree of certainty while retaining flexibility.
If pricing improves before completion, it is often possible to move onto a lower rate. Equally, securing a product early can offer protection should conditions tighten again.