The Bank of England is expected to cut the base interest rate today in what could be the first in a series of reductions this year.

In March, the Bank of England held its base rate at 4.5%, a month after cutting it by 0.25%.

And a new rate of 4.25% is the outcome most analysts and commentators are predicting.

Brokers expect cut

Three in five buy-to-let mortgage brokers anticipate a 0.25% cut in the rate, according to BTL lender Landbay.

In a poll of 119 brokers, 71% expect a cut to the base rate, with one in nine (11%) even predicting a 0.5% cut.

Current swap rates, which the Bank factors into its thinking, also point to a base rate reduction.

In reality, most lenders have priced in the expected cuts.”

Paul Hardy, MD of LSL Estate Agency Franchising, says: “I am confident that a Bank of England interest rate cut on 8th May will give the market further confidence, especially since all predictions suggest a continuing downward trajectory for the remainder of 2025.

“In reality, most lenders have priced in the expected cuts and the new higher rates of Stamp Duty have already somewhat increased the expense of purchasing a home – especially a second one.”

Last week, US banking giant Morgan Stanley forecast a series of cuts by the Bank this year down to 3.25%, and 2.75% next year, with an eventual level of 2% possible.

The Bank has set an inflation target of 2% as part of its strategy to steer the economy in the right direction. With the latest rate of 2.6%, much will depend on April’s rate which will be announced on 21 May.