Rob Clifford, Chief Executive of Stonebridge, comments on MPC’s rate decision

06 February 2025

The Monetary Policy Committee's move today signals it felt the need to intervene to boost the economy.

With business confidence wavering, growth stalling, and a potential US trade war looming, the decision was clearly taken to prioritise growth over taming inflation at present.

Here’s hoping today’s cut will jumpstart spending, encourage investment, and keep the momentum building for what is tipped to be a positive year for the UK’s housing market.

The key question is: where do rates go from here? Markets are betting on three more cuts this year, though that is far from guaranteed.

If inflation proves stubborn, we might see fewer cuts; yet if the economy continues to hibernate through the rest of winter, the MPC could be forced to act even more aggressively.

While it’s hard to be certain, we remain confident that mortgage rates will continue to fall throughout 2025. That should leave borrowers in a much stronger position at the end of the year than they were at the start.

MPC decisions and what they mean for mortgage rates can be baffling for the everyday borrower. As always, the value in advisers providing timely reminders to their customers that they have a trusted expert on-hand is invaluable.