Until last month, interest rates had been at a 16-year-high of 5.25%.
The Bank of England’s decision to hold the base rate at 5% comes as no surprise after inflation data revealed core inflation jumped to 3.6% in August, despite headline inflation holding steady at 2.2%. With inflation pressures persisting, the BoE’s decision signals caution, especially given its forecast of inflation rising again toward the end of the year.
Industry reaction:
Nathan Emerson, CEO of Propertymark, commented:
“Since the initial rate cut a few months ago, many people will have been closely awaiting any further anticipated cuts, however, it remains crucial the Bank of England continue to implement cuts in a controlled and functional manner, as not to fast reverse the economic progress so far.
“Bearing in mind yesterday’s figures regarding inflation, it is understandable why the decision to hold the base at current levels has been employed. Propertymark remains keen to see full consistency within the wider economy and for any eventual base rate cuts to create a pathway for people that provides long-term stability, confidence and affordability.”