One member of the committee preferred to reduce the rate by 0.25bps to 5%.

The bank rate has remained at 5.25% since August 2023.

The news comes after yesterday’s (20th March) announcement from the ONS that CPI inflation had fallen to 3.4%, the lowest in over two years.

Industry professionals have given their take on the latest bank rate:

Duncan Kreeger, CEO and founder of TAB:

"Now for the fifth consecutive time, the BoE has opted to keep its interest rate unchanged, which is bringing some much-needed consistency to the mortgage market across the UK.

“However, it's crucial to recognise that cutting rates would potentially have an instant impact on the market, driving deal flow and stimulating investment.

“This ongoing stability signals a positive trend, but it's evident that the next step should involve rate reductions to facilitate easier borrowing.

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“Lower rates would empower lenders to offer more competitive rates, thereby reigniting the market for investors and developers, and ultimately fostering economic growth."

Matthew Kimber, CEO at Molo:

“With UK inflation hitting a two-and-a-half-year low at 3.4% in February, the BoE’s decision to keep interest rates at 5.25% reflects a cautious stance amid ongoing economic uncertainties.

“While stability in lending conditions offers borrowers confidence in mortgage rates, it also reflects the bank’s vigilance towards economic recovery and inflation control.

“For borrowers, the unchanged interest rates mean stable mortgage conditions, ensuring financial security but potentially missing out on cost reductions. 
“It supports financial planning but necessitates monitoring future economic trends for potential affordability impacts.”

Amy Reynolds, head of sales at Antony Roberts:

“It is no surprise that the BoE has held rates at 5.25%, and we expect the same at the next meeting.

“If the inflation target is hit, we could see a rate reduction as early as June, which in turn will stimulate borrowing if lenders re-price and start offering circa 4% mortgages.

"In an election year, the government will be very keen to be on track with its inflation forecast, as any positivity helps consumer confidence and the property market.

“The market relies on confidence; stable interest rates mean a stable, albeit relatively dull, market.

“A rate reduction as soon as possible will therefore be pivotal in stimulating activity in the property market."