The Bank of England has today maintained the base rate at 4.5%.
The Bank’s nine-person Monetary Policy Committee (MPC) voted by a majority of 8-1 in favour of keeping the rate unchanged. One member voted for a cut to 4.25%.
Read on to find out what the decision means for you, whether you’re buying a home, are due to remortgage, or trying to get the best return on your savings.
Why has the Bank of England held the base rate?
The MPC’s decision to hold the rate had been expected, following news that inflation increased by 0.5 percentage points to 3% in January.
Wider economic uncertainty also contributed to the Bank’s decision.
In its report, the MPC said ‘global trade policy uncertainty has intensified’ while ‘other geopolitical uncertainties have increased and indicators of financial market volatility have risen globally’.
Overall, the MPC concluded that ‘a gradual and careful approach [to reducing the base rate] is appropriate’.
- Find out more: how the base rate works
What the decision means for homeowners
Unfortunately for homeowners due to remortgage, today’s decision is unlikely to result in mortgage rates falling significantly.
Nicholas Mendes of the mortgage broker John Charcol says: ‘For the 1.8 million mortgage holders transitioning from sub-2% five-year fixed deals in 2025, timing the next move is crucial.
‘In recent months, lenders have repriced competitively in response to lower Swap rates, and further reductions remain possible if market conditions continue improving.
‘However, monetary easing is not guaranteed. While waiting for lower rates may seem tempting, borrowers nearing the end of a fixed-term deal should act promptly rather than holding out indefinitely.’
If you’re currently on a standard variable-rate mortgage your rate won’t change. Tracker mortgages, which are linked to the base rate, will also remain the same.
The table shows the current top rates for remortgaging across a range of loan-to-values.
Data from Moneyfacts, correct as of 20 March 2025. Customer scores are based on a survey of 3,556 members of the public in August-September 2024 and combine overall satisfaction with likelihood to recommend the provider. The average customer score is 70%. To become a Which? Recommended Provider a lender must get a top customer score, consistently offer competitive deals and be fully covered by the Financial Conduct Authority banking standards regime. ‘Revert rate’ is the standard variable rate (SVR), which is the mortgage rate you’d be transferred onto when your deal ended if it remained unchanged between now and then.
- Find out more: best mortgage and remortgage rates
What the decision means for homebuyers
David Hollingworth of the mortgage broker L&C mortgages expects to see rates for homebuyers continuing to fall gradually ‘unless there is a marked shift in the Bank’s messaging’.
He says: ‘Given the fact today’s outcome was virtually nailed on, there should be barely a ripple in the mortgage market. Lenders remain highly competitive and continue to make small adjustments to improve rates wherever they possibly can.’
The table shows the current top rates for homemovers and first-time buyers.
Data from Moneyfacts, correct as of 20 March 2025. Customer scores are based on a survey of 3,556 members of the public in August-September 2024 and combine overall satisfaction with likelihood to recommend the provider. The average customer score is 70%. To become a Which? Recommended Provider a lender must get a top customer score, consistently offer competitive deals and be fully covered by the Financial Conduct Authority banking standards regime. ‘Revert rate’ is the standard variable rate (SVR), which is the mortgage rate you’d be transferred onto when your deal ended if it remained unchanged between now and then.
- Find out more: how to buy a house
What the base rate hold means for savings
Since the most recent base rate cut on 6 February, the average instant-access savings rate has dropped by 0.13 percentage points.
Some accounts may still see further rate reductions in the coming weeks, as some providers are still repricing in response to February’s rate cut.
As the announcement today does not signal a change in strategy from the Bank of England, fixed-rate savings accounts are expected to continue their slow downward trajectory.
This table sets out the top savings rates available across instant-access and fixed-rate accounts.
Table notes: rates sourced from Moneyfacts on 20 March 2025 and based on a balance of £1,000. No providers in this table had a sample size large enough for us to generate a Provider customer score. (s) This is a Sharia-compliant product, and so offers an expected profit rate (EPR) as opposed to an annual equivalent rate (AER)
- Find out more: best savings accounts
Will the best rate fall in 2025?
The MPC has a further six meetings scheduled in 2025, with the next base rate announcement due on 8 May.
All eyes will be on March’s inflation figures, to be released on 16 April, as a significant rise or fall in inflation could heavily influence the MPC’s next decision.
Experts predict there will be further base rate cuts this year. In its 2025 outlook, Barclays predicted that the rate will fall below 4% in the second half of the year.
However, the timing of any cuts will depend on what happens to key economic indicators, such as inflation levels and economic growth, over the coming months.
