The Bank of England’s Monetary Policy Committee (MPC) has voted to hold rates at 5.25% for a fifth consecutive time.

The MPC is tasked with keeping inflation at 2.0%.

In the minutes of its meeting, the MPC said: “CPI inflation is projected to fall to slightly below the 2% target in 2024 Q2, marginally weaker than previously expected owing to the freeze in fuel duty announced in the Budget.”

Ben Thompson, Deputy CEO at Mortgage Advice Bureau said: “It was always likely going to be too soon for rate cuts, and an unchanged rate is the next best thing. As inflation continues its downward trend, all eyes will be on the voting intentions of the Bank of England’s Monetary Policy Committee. With just one member voting for a rate cut this time around, it might take a little longer for momentum to build toward base rate cuts.

“The good news is that mortgage rates are lower than they were this time last year. Inflation continues to slow, and we’re edging ever closer to a base rate cut, with optimism remaining that more lenders will look to lower their rates even further. Those looking to get on the property ladder should start getting mortgage ready by speaking with a broker. Homeowners looking to remortgage should also begin to look at what deals are available.”