Rob Clifford, Chief Executive of Stonebridge, comments on the MPC’s decision to hold interest rates

19 December 2024

"The Bank of England's Monetary Policy Committee (MPC) has played Scrooge this Christmas, refusing to deliver the gift of a rate cut for borrowers. However, that shouldn’t come as a surprise. While inflation has eased significantly from its peak, its persistent stickiness made a December cut highly unlikely.

"That said, the reasons are understandable. Business confidence is wavering and the economy contracted in October which clearly impacted on this decision today. Despite this, we still expect the MPC to act decisively in February, delivering a quarter of a percent cut to kick-start the economy.

"We believe there will be at least two further rate cuts in 2025, taking the benchmark rate to between 3.5% and 4%. This typically results in more competitive mortgage pricing and lower monthly repayments for borrowers, bringing much-needed benefits to millions of households across the country.

“We should never forget that we live and breathe this. For everyone else grappling with what this means for their own unique personal circumstances, MPC decisions and what they actually mean for mortgage rates can be baffling. The value in providing timely reminders to customers that they have a subject matter expert on-hand cannot be overstated.”