More than three-quarters (76%) of specialist brokers anticipate interest rates will remain unchanged following the Bank of England’s Monetary Policy Committee (MPC) meeting scheduled for Thursday, according to research from Landbay.
The brokers’ expectations align with broader economic opinion and widespread expectations about interest rates – as brokers and lenders try to assess the central bank’s ongoing efforts to balance the control of inflation and the need to boost growth.
The poll, conducted by the specialist buy-to-let lender, uncovered a range of perspectives about interest rates among brokers.
When asked “What do you expect to be the outcome of Thursday’s MPC meeting?” a fifth of brokers polled (20%) believe a rate cut is on the horizon. Most of those brokers (18% of the total) predicted a modest 25-basis-point reduction. A smaller, more optimistic cohort (2% of the total) anticipated a more substantial 50-basis-point drop.
Only 3% of the specialist brokers polled predicted a 25-basis-point increase in the base rate.
These varied forecasts highlight the uncertainty that persists in the UK economy, even as inflationary pressures have moderated somewhat since their peak.
Rob Stanton, sales and distribution director at Landbay, said: “The consensus is clearly towards a hold at 4.5%, but a 25-point cut is not unjustified given GDP growth is limping along and needs support —. Overall, the bank has been painting a pretty bleak stagflationary picture for 2025 and lower interest rates would mean millions of people will see an immediate drop to their mortgage rates.
“While controversial, two members of the MPC, pushed for a 50-point cut last time, so even that isn’t totally outlandish.
“Should interest rates remain unchanged, which is certainly what we are expecting, it might usher in a period of calm for the buy-to-let sector, which has experienced considerable instability recently with fluctuating borrowing costs and a shifting evolutionary landscape. A decision to hold rates steady could provide a stabilising force for landlords and property investors, who rely heavily on predictable financing costs to sustain rental yields.”
