Interest rates held at 4%: Will we see a cut in December? - what MORTGAGE

Interest Rates Held at 4% Again

The Bank of England has kept interest rates steady at 4% for the second consecutive time, reflecting caution amid persistent high inflation and the upcoming Autumn Budget.

Impact on Mortgage Holders

Mortgage borrowers with variable rate deals will be disappointed as the anticipated cut in borrowing costs was not made. However, those securing fixed-rate mortgages—whether for buying a new home or remortgaging—have already seen lenders reducing rates significantly over the past week.

Monetary Policy Committee Vote

The Bank of England’s nine-member Monetary Policy Committee (MPC) voted 5–4 to maintain the base rate at 4%, with the minority favoring a cut to 3.75%.

Expert Analysis

Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, commented:

“Today’s vote was a close decision, with the Monetary Policy Committee split 5-4 in favour of maintaining the current position, underscoring the delicate trade-off between supporting growth and containing inflation.

While CPI inflation held steady at 3.8% in the 12 months to September, the BoE believes it has peaked and may gradually ease from here, raising hopes of further rate cuts ahead.

However, with the Autumn Budget arriving before the next rate decision in mid-December, any tax hikes could significantly influence the path of monetary policy.”

Budget Considerations

Chancellor Rachel Reeves suggested earlier this week that the Budget, due on 26 November, might include tax increases amid ongoing poor economic growth, which could impact future monetary policy decisions.

Author’s summary: The Bank of England’s narrow decision to hold rates at 4% reflects balancing inflation control with economic growth, while the upcoming Budget may decisively affect future rate moves.

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what MORTGAGE what MORTGAGE — 2025-11-06

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