The Bank of England is widely expected to hold the base interest rate at 4% today as it continues to take a cautious approach.

Last month, members of the Bank’s Monetary Policy Committee (MPC) and Governor Andrew Bailey (main picture) voted narrowly by five to four in favour of a 0.25% cut, despite expectations that a cut was likely.

So, with many analysts predicting no reduction this time it would appear probable that the committee will decide against a reduction.

Stubborn

This outcome is despite a stubborn inflation figure, which remained static at 3.8% yesterday, well above the Bank’s 2% target.

News also came yesterday of a slowdown in house price growth, with the Office for National Statistics figures showing a 2.8% increase in the year to July, down from 3.6% the previous month.

And Knight Frank has changed to its forecast for house price growth down from 3.5% to 1%.

Tax rises

So, a mixed picture for potential property buyers, many of whom appear to be hesitant about possible tax rises in the November Budget.

There will be another Bank interest rate decision before then, on 6 November, which gives the MPC members another opportunity to make a cut if they see fit.

Two factors

Nathan Emerson, CEO of Propertymark, says: “There continues to be two factors that may weigh heavily on consumers’ minds as they decide on what to do next regarding potentially approaching the buying and selling process.

“Any decision that the Bank of England makes regarding base rates will determine whether people can realistically afford to relocate, and the uncertainty about potential further Stamp Duty restructuring may impact those moving house in England and Northern Ireland,” he says.

“Though we have clarification that the Budget will take place on 26 November 2025, this may cause people to delay their next house move in the meantime.”

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