Two members 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 base rate announcement follows the news on 17th April that inflation had fallen to 3.2%.

Industry professionals have reacted to the latest news from the BoE

Mark Harris, CEO at SPF Private Clients: 

“The bank was always likely to hold rates this month, and we expect June’s meeting to have a similar outcome.

“That said, by that point there should have been two further lots of improving inflation data, reinforcing the argument for cutting rates by the end of the summer.

"It is time for the rate setters to be bold and start reducing rates, which will increase borrower confidence and give the housing market a welcome boost.

"At the last meeting, eight members of the MPC voted to hold rates, with one voting for a quarter-point reduction — this time the vote was more split, with seven voting for a hold and two for a quarter-point cut.

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"As far as mortgage pricing is concerned, what the Bank of England does with base rate is only part of the picture — if swap rates, which underpin the pricing of fixed-rate mortgages, edge further downwards, then lenders will introduce cheaper mortgage rates, increasing the choice for borrowers at more palatable pricing.”

Neil Rudge, head of enterprise at Shawbrook:

"The Bank of England's decision to hold rates for a sixth time suggests a cautious approach."

"While a cut may be on the horizon sometime later this year, the bank likely wants more data to confirm the inflation slowdown.

"This period of stable rates presents a valuable opportunity for businesses to reassess their plans but the positive signs of economic recovery should boost confidence for SMEs, potentially leading to increased investment and growth."

Amy Reynolds, head of sales at Antony Roberts:

“It is not surprising that the Bank of England held rates again at 5.25%.

“If the inflation target is hit, we could see a rate reduction next month, which will stimulate borrowing if lenders also reflect this in lower mortgage rates at circa 4%.

 "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 be pivotal in stimulating activity in the property market.”