Mortgage borrowers will be able to breathe a sigh of relief after Thursday’s announcement that the Bank of England has decided to hold rates at 5.25% – but amid the good news was a hint that the cost of home loans may not fall much further.
The Bank’s decision to hold rates was no surprise to the money markets, which are anticipating cuts next year. The consensus is that the base rate will fall to 4% in the next 12 months, but before today’s announcement some economists suggested it could drop to as low as 3.75%.
