The Bank of England’s Monetary Policy Committee (MPC) has today held its benchmark interest rate steady at 4.25%, opting for a cautious, measured response amid persistent inflation and global uncertainty. Here’s a look at what this means and why you should know:

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🚦 Why Did the BoE Hit Pause?

• Inflation remains high — May’s Consumer Price Index came in at 3.4%, well above the 2% target. While slightly down from April, it indicates inflation pressures are still present

• Geopolitical tension matters — The Israel‑Iran conflict and potential for increased tariffs (especially from the U.S.) threaten oil prices, which could reignite inflation

• A cautious approach — Six of the MPC’s nine members voted to hold, with three in favour of lowering the rate—signalling a strategy of “gradual and careful” cuts as new data roll in

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💷 What This Means for You

Mortgage holders:

Those on trackers and variable-rate mortgages could see lower rates soon, but today’s hold means changes may not come until the Autumn.

For those nearing the end of a fixed-rate deal, now isn’t the time to rush—but monitoring the market for lower upcoming deals makes sense.

Savers:

If banks pass on cuts, savings rates may fall, but not immediately. Watch for alterations in easy-access and fixed-term products.

Borrowers & businesses:

Loans and credit cards may become marginally cheaper over time.

Corporate borrowers may benefit later this year as rates continue to gradually ease.

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📈 What Comes Next?

Analysts expect another quarter-point cut in August, potentially followed by more later in 2025, with markets forecasting a drop to around 3.5% by mid‑2026  However, that depends on whether inflation eases as expected and geopolitical risk remains contained.

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🔍 Why This Matters to Mc Daid Mortgages Clients

At Mc Daid Mortgages, we’re always monitoring market shifts closely:

Trackers & SVR borrowers: We’ll let you know when rate drops affect your deal—and when it’s time to remortgage.

Fixed-rate holders: If your deal expires soon, we’ll compare new, lower rates and help you switch smartly.

Home buyers & investors: We’ll explain the mortgage rate landscape and help you lock in the best deal according to your timing.

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✅ Bottom Line

Today’s decision to hold the base rate at 4.25% reflects a balance between easing inflation and global economic risks. For borrowers, this means moderate relief may come later in the year—but patience and planning will pay off.

📞 Call us: 07968155176
📍 Visit us: 40, Coneyville, Derry, BT48 8FW
📧 Email us: pat@mcdaidmortgages.co.uk
🌐 Website: www.mcdaidmortgages.com

 

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