The Bank of England has decided to leave the base rate unchanged at 3.75%, giving homeowners and prospective buyers a period of stability while it continues to monitor inflation and the wider economy.
Although inflation has eased in recent months, the Bank has warned that global events, particularly rising energy prices linked to tensions in the Middle East, could still put upward pressure on prices later this year. As a result, further rate increases haven’t been ruled out if inflation proves more persistent than expected.
For now, most economists believe the Bank is taking a cautious, wait-and-see approach rather than rushing into further changes. If you’re considering buying a home, remortgaging or reviewing your current deal, now is a good time to seek independent mortgage advice and understand the options available to you.