Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Bank of England Holds Base Rate at 3.75% for Fifth Consecutive Meeting

The Bank of England’s Monetary Policy Committee (MPC) has voted to keep the base rate at 3.75%, marking the fifth consecutive hold since December 2025. The decision was made by a majority of 6:3, with three members voting to increase the rate to 4%.

The base rate was last changed in December, when it was reduced from 4% to 3.75%. According to the minutes of the latest MPC meeting, the committee cited ongoing conflict in Iran and surrounding regions, as well as the potential impact of an “energy shock” on the UK economy, as reasons for maintaining a cautious approach. The MPC also reiterated its commitment to achieving the 2% inflation target “sustainably.”

For UK letting agents and inventory clerks, the continued hold on the base rate may provide some stability in the property market. The report notes that the mortgage market has already been responding to changing economic conditions, with higher swap rates and funding costs prompting some lenders to increase pricing. This means that mortgage rates have been moving independently of the MPC’s decisions.

The next MPC meeting is scheduled for September. Until then, the direction of mortgage pricing is expected to be influenced by funding markets and geopolitical developments, as well as the base rate itself.