The Bank of England has announced that the Bank Rate will remain at 4.5%.

The UK central bank’s monetary policy committee (MPC) voted by eight to one to keep rates unchanged.

The markets widely expected rates to be held due to continuing concerns over UK inflation.

Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “As expected, the Bank of England voted to hold rates at 4.5% this month. However, while predictable, the decision is disappointing as another rate reduction would help boost the housing market and wider economy, particularly as the stamp duty concession comes to an end this month.

“While the Bank remains concerned about rising inflation and sees it as a threat, the oncoming headwinds would appear to be stronger. The Bank must be proactive – by acting sooner rather than later and introducing further rate reductions, the money markets will shift expectations and swap rates should fall, which in turn will mean cheaper mortgage rates for borrowers.”

Hugo Davies, chief capital officer and managing director for mortgages at LendInvest, added: “The Bank of England has kept the base rate at 4.5%, reflecting its continued balancing act between controlling inflation and managing borrowing costs. With inflation still hovering above target and economic growth fragile, the central bank is taking a cautious approach. This means no immediate relief for borrowers, but expectations of the next cut in May remain intact.

“March is a pivotal month for property investors shaping their 2025 strategy, with key market-moving events ahead – including next week’s Spring Budget, the OBR’s UK Economic Forecast, and ONS inflation data, all set to provide critical insight into how borrowing conditions evolve.

“Borrowers should be closely tracking lender movements and considering finance structures that offer flexibility ahead of changing conditions. Investors, meanwhile, have a window to negotiate before market sentiment shifts.”