At its meeting ending on 18 June 2025, the MPC voted by a majority of 6–3 to maintain Bank Rate at 4.25%. Three members preferred to reduce Bank Rate by 0.25 percentage points, to 4%.
The next rate update is expected by 7 August.
Daniel Austin, CEO and co-founder at ASK Partners, the specialist property lender, said: "Today’s decision to hold interest rates, following unchanged inflation data, offers some reassurance after recent market volatility. However, with global uncertainty, driven by trade tensions and domestic tax shifts, still casting a shadow, the question now is how long the Bank of England can maintain this pause."
"For homeowners and buyers, the hope of lower borrowing costs remains alive. But persistently high fixed mortgage rates continue to delay meaningful relief. While house prices have largely flatlined since the end of the stamp duty holiday, any Trump-related volatility that pushes down swap rates could improve affordability and rekindle momentum.
"Investors and developers are watching closely. Demand remains strong in resilient sectors like co-living and build-to-rent, where supply-demand imbalances keep capital flowing. A clear, downward path for rates would help unlock further activity - but with uncertainty still high, staying agile is essential."
Over at Hargreaves Lansdown, the various areas of the economy impacted have commented.
Susannah Streeter, Head of Money and Markets, said: "Policymakers are in a stalemate. Growth has seized up, but inflation has stayed stubbornly sticky. Trade deals have cleared some economic clouds, but conflict in the Middle East threatens further turmoil. Energy prices looked like they were on their way down, but are now ramping back up. The labour market has shown signs of easing but not enough to erase worries about hot wage growth."
"In every direction, there’s a conundrum to confront, so policymakers have judged that pressing the pause button on rates is the best option for now. Given the unpredictable winds whistling through the world, global growth is set to slow, keeping activity in the UK highly sluggish. The economy will need a shove to get moving again, and so two interest rate cuts are still on the horizon this year. Hopes for a summer rate reduction haven’t completely faded, with bets ramping up that a cut in August could provide the rays of relief that borrowers have been waiting for.’"
Mark Hicks, Head of Active Savings, Hargreaves Lansdown, said: "Savings rates are likely to hold relatively firm. Variable rates owe a lot to the Bank of England, so a hold means less movement in the market. Fixed rates, meanwhile, are being pulled in two different directions, so lack of movement here hides the fact there’s a lot going on.
The markets are expecting two more rate cuts this year, so all other things being equal this would put downwards pressure on savings rates. However, at the same time, the bond market is busy putting upwards pressure on savings rates. It means little movement in the savings market, with small tweaks in one direction or the other. It also makes forecasting harder. An awful lot depends on global politics, which has proven incredibly difficult to predict in recent months.
It means that instead of trying to second-guess global political developments, it makes sense to pick the right type of savings account for your needs and checking online banks and savings platforms for the best possible deals.2
Helen Morrissey, Head of Retirement Analysis, Hargreaves Lansdown, said: "Today’s interest rate hold will contribute to a sustained period of success in the annuity market. The latest data from HL’s annuity search engine shows a 65-year-old with a £100,000 pension can now get up to £7,900 per year from a single life level annuity with a five-year guarantee. After a period in the doldrums, the market has roared back to life off the back of interest rate increases and soaring gilt yields. While incomes haven’t continued to rise at the rate they did a couple of years ago, the market is delivering real value for retirees on the hunt for a guaranteed income."
2This sense of relative calm in the market may well prove to be a catalyst for even more retirees to take the plunge. Many may have held back in the hope of further increases, but could decide that now is the time to secure a guaranteed income. However, it remains hugely important to do your research before you buy. Different providers offer different rates, so making the wrong choice could leave you thousands of pounds worse off over the course of your retirement. Once bought, an annuity cannot be unwound, so you could be making a costly mistake if you are too hasty. Using an annuity search engine to look across the market will really help you work out what is on offer and get the best product for your needs."
Sarah Coles, Head of Personal Finance, Hargreaves Lansdown, said: "You only have to look at recent moves in the mortgage market to see how tough the banks are finding it to price their deals right now. Recently we’ve seen some banks cut rates, some increase them, and some do a combination of both."
"You’d be forgiven for thinking that the Bank of England holding rates might bring some stability, but while that’s true for tracker rates, fixed rate deals are another matter entirely. They’re facing a strange combination of factors, with expected rate cuts pointing to a future of lower rates, and rising bond yields raising the cost of fixed deals and pushing rates up. Neither of these things look set to change in a hurry, so we may need to get used to uncertainty for a while.
"At times like this, we’ll get some low rates in the mix every so often, so it will be key to snap up opportunities as soon as they appear. The HL Savings & Resilience Barometer found that those who have remortgaged since rates started climbing at the end of 2022 pay £157 a month more for their mortgage, so it’s worth doing what you can to keep the rise in your monthly payments to a minimum."
