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

20 March 2025

Stonebridge sets out impact of rate decision for mortgage borrowers: Rob Clifford, Chief Executive of Stonebridge, comments on today’s MPC decision

“The Bank of England’s Monetary Policy Committee (MPC) has clearly opted to keep its powder dry for now, with inflation a full percentage point above target. However, the case for a rate cut is becoming stronger, given the economy is stagnating and consumer confidence is waning. We believe a cut is imminent, with the MPC’s May meeting looking most likely the one which will make the next cut.

“While inflation has ticked up, this is largely due to external factors such as higher energy costs and a strong dollar, rather than an overheating domestic economy. That reduces the risk of another inflation spiral like the one we saw in 2022 and strengthens the MPC’s hand when it comes to cutting rates. A reduction would provide a much-needed boost to both the economy and the mortgage market in our opinion.

“We still anticipate a further two to three cuts this year, bringing the base rate down to around 3.5-4% by year-end. While mortgage rates are not directly tied to the base rate, they tend to move in the same direction, meaning a cut would likely ease mortgage costs for borrowers – welcome news for the estimated 1.8 million borrowers refinancing this year.”