Three members preferred to reduce the rate to 4%.

This comes after the MPC voted by a majority of five-to-four to reduce the bank rate to 4.25% in May.

Specialist finance industry professionals have given their say on today’s (19th June) MPC decision to hold the base rate:

Guy Murray, co-head of short-term finance at West One: "It’s disappointing not to see a base rate cut at this stage, particularly as the Bank of England now takes a break until September.

“For borrowers in the specialist finance space — especially developers and housebuilders managing larger, more complex funding needs — the lack of movement in rates keeps borrowing costs higher than they need to be at this point in the cycle.

“Developers are eager to get projects moving, but they need the right financial conditions to do so — and that means action, not caution."

Jonathan Samuels, CEO at Octane Capital: "The Bank of England’s decision to hold interest rates today is a measured and expected response to the current economic climate, and we’ve seen this tentative approach adopted many times before.

“Of course, this continued pause will still provide some much-needed reassurance for borrowers and lenders alike, maintaining the stability we’ve seen return to the mortgage sector in recent months.”

Alpa Bhakta, CEO at Butterfield Mortgages Limited: “Investors will certainly have hoped for a rate cut today, but persistent inflation and other economic indicators have made the Bank of England’s job increasingly complex.

“Even if UK inflation runs above the 2% target, there remains a real possibility that we’ll see the base fall later this year. The question is how many cuts, and when will they come.”

Paresh Raja, CEO at Market Financial Solutions: “When it cut the base rate in early May, the MPC strongly indicated that further cuts would follow.

“But economic and political landscape, both in the UK and globally, continues to evolve at pace; pronounced turbulence and uncertainty made a hold today almost inevitable.

“With the prospect of multiple rate cuts in the second half of this year now fading, it’s vital that lenders continue to adapt their products and offerings in line with borrowers’ needs.”

Paul Noble, CEO at Chetwood Bank, said: “A hold today is the cautious choice, but leadership means more than playing it safe.

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“The MPC’s decision will be welcomed by some, but it’s another example of cautious drift over clear direction.

“The MPC’s lack of action piles on greater uncertainty for mortgages as well, leaving would-be buyers in the lurch.

“This cautious approach could lead to greater paralysis when what markets need is a catalyst.”

Tomer Aboody, director at MT Finance: “With the current economy not at its strongest, the Bank of England has a dilemma on its hands: does it reduce rates further now, since another reduction can increase inflation?

“With the housing market being one of, if not the most crucial, economy drivers in the UK, any base rate reduction will increase market activity, which in turn increases consumer confidence.

“Another rate cut is surely on the cards for 2025, even though the Bank wasn’t quite ready to make it this time around.”

Steve Cox, CCO at Fleet Mortgages: “Today’s decision by the Bank of England to hold bank base rate was widely expected, particularly in light of global uncertainties and the need for continued reassurance inflation is sustainably on its way back to target.

“That said, today’s decision has raised the prospect of a cut at the next meeting in August but again, a lot can happen both internationally and domestically between now and then, which means it’s very difficult to predict this seven or so weeks in advance.”

Alan Davison, CCO at Afin Bank: “It’ll be interesting to read the minutes from today’s MPC meeting, because while a base rate hold was widely expected, there are a lot of factors that would suggest a cut is needed, so it’ll be fascinating to see what kind of split there was between members.

“At home inflation remains stubbornly high, while internationally the risk of war in the Middle East is adding to global pressures already stoked by the war in Ukraine and US tariffs, damaging confidence.

“Significantly, economists and commentators are also split on how quickly and how deeply the Bank of England will cut the base rate, with some predicting another three cuts by the end of the year.”

Mark Harris, chief executive at SPF Private Clients: “With only a two-way split in voting this time around, this is encouraging, suggesting that another reduction could come at the August meeting.

“However, with the Bank opting for a cautious approach, it has missed a real opportunity to be bold by cutting rates again.

“This would have sent out a strong message, helping boost the housing market and wider economy, particularly now that the stamp duty concession is no longer available.”