Borrowers were left disappointed after the previous base rate reduction preceded rising mortgage rates.
The Bank of England’s Monetary Policy Committee (MPC) made an emphatic start to 2025 after slashing the base rate to 4.50% in its first meeting of the year. Today’s 0.25 percentage point cut comes as inflation unexpectedly eased to 2.5% in December 2024 and sees the UK’s central interest rate fall to its lowest level in more than 18 months.