One member preferred to reduce the bank rate to 4.25%.

The rate reduction comes after the MPC voted seven-to-two to reduce the rate from 4.75% to 4.5%.

Commenting on the decision to maintain the base rate, the BoE said that since the MPC’s previous meeting, “global trade policy uncertainty has intensified, and the United States has made a range of tariff announcements, to which some governments have responded.

“Other geopolitical uncertainties have also increased and indicators of financial market volatility have risen globally."

Members of the specialist finance have given their say on the MPC decision to hold the base rate.

Ryan Etchells, CCO at Together:

“It’s disappointing but expected that the Bank of England has employed a wait-and-see strategy by holding rates, rather than providing a much-needed boost to UK borrowers, investors, developers and SMEs.

“This week, the OECD downgraded its growth forecasts for the year from 1.7% to 1.4% as inflationary pressures, and global trade war threats persist, so some caution from the Bank on the decision to hold rates is understandable.

“However, borrowing costs will remain high, which will do nothing to kick start the sluggish UK economy and support the very businesses that will provide the momentum nor stimulate the housing market previously identified as a key priority for the government.

“Looking ahead, we’d expect to see at least two further base rate reductions in 2025, although maybe at a slower pace than most economists previously predicted.

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“We also have the highly anticipated Spring Statement next week, and it’s absolutely crucial the chancellor focuses on boosting the UK economy, whether through reforms such as reversing changes to stamp duty or cutting business rates to unlock growth potential.”

Mark Harris, CEO at SPF Private Clients:

“As expected, the BoE voted to hold rates at 4.5% this month. However, while predictable, the decision is disappointing as another rate reduction would help boost the housing market and wider economy, particularly as the stamp duty concession comes to an end this month.

“While the bank remains concerned about rising inflation and sees it as a threat, the oncoming headwinds would appear to be stronger. The bank must be proactive – by acting sooner rather than later and introducing further rate reductions, the money markets will shift expectations and swap rates should fall, which in turn will mean cheaper mortgage rates for borrowers.”

Alan Davison, CCO at Afin Bank:

 “The BoE has a difficult balancing act at the moment because inflation remains high, yet economic growth has stagnated.

“The markets all seem to feel that more base rate cuts are due later in the year, but the bank’s MPC clearly wants to wait for tax rises to land and global trading conditions to calm down before acting.

 “For new borrowers this isn’t great news as most are already going to have to deal with the impact of higher stamp duty thresholds from the start of April, so they would have benefitted from lower mortgage costs. They will be hoping for better news from May’s announcement.”

Paresh Raja, CEO of Market Financial Solutions:

“The past six months have shown that predicting base rate movements is never straightforward. The hope had long been that once inflation was brought under control, the Bank of England would rapidly reduce rates.

“But this was over simplistic; it overlooked the myriad other factors at play - economic and politically, domestically and internationally, the landscape is constantly evolving, and while further cuts to the base rate are still expected this year, it is likely that the central bank will remain cautious. Today’s decision reflects that.

“Where the property and mortgage markets are concerned, it is important that neither complacency nor inertia are allowed to set in. Sitting tight in the assumption that rates will tumble could prove risky.

“With data showing that house prices and buyer demand are on the rise, the market will clearly move ahead. So, the focus from lenders when serving brokers and borrowers has to be on delivering products and services that give clients the confidence to act in the here and now, with flexibility and optionality remaining key qualities in achieving this.”