Bank Rate held at 0.1%. For now.

The folks at the Bank of England (BoE) have decided to maintain the bank rate at its current level of 0.1%, following a good deal of speculation over the last few weeks that they might increase it. The Bank’s Monetary Policy Committee (MPC), made up of nine people, voted 7-2 in favour of keeping the rate at its record low.

A cursory glance at the minutes of the meeting show that the current inflation situation occupied much of the conversation, with the assumption that it will hit 4.5% this month being the main message. But the MPC believes that this will recede over time as supply disruption eases, global demand rebalances, and energy prices stop rising. Which would, in itself, be nice.

That being said, the MPC did add that it is likely to increase bank rate over the coming months. This has already been pencilled in by the markets and mortgage lenders so, at the risk of irritating you (as you’ve already spent 30 seconds reading this), there’s not much to see here.

Our advice to our clients, and other mortgage borrowers, remains the same as it was just last week after the Autumn Statement. If you are ready to look at a new mortgage now, or in the immediate future, then it makes sense to act sooner rather than later. But, at the same time, if you’re not quite ready, don’t panic. Even when rates rise, we simply cannot see them moving far for years.

Of course, if you want to find out more and understand what it means for you specifically, you know where we are.