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Comment on MPC decision: Market accepts base rate hold, as future rises predicted by Joe Black
['Sam Barker']
Comments for Mortgage Strategy
The mortgage market accepted the Bank of England’s decision to hold base rate at 3.75% today, but said future rises were inevitable.
The decision to pause base rate came as the Monetary Policy Committee (MPC) decided it was necessary to keep inflation under control.
The MPC voted by a majority of 6–3 to maintain base rate at 3.75%.
The market agreed with the decision to hold base rate, but said the MPC could not keep playing the same card forever.
“Despite the rate hold, borrowers still have to contend with an upwards trajectory in mortgage pricing, with a number of lenders increasing rates on their two- and five-year fixes.