Just Mortgages comments on BoE MPC decision

08 May 2025

John Phillips, CEO of Just Mortgages and Spicerhaart, said:

“Today’s decision was clearly not a surprise, with financial markets pricing in a cut with unanimous certainty. What will be interesting though is what happens next and whether today’s call is the opening of the flood gates for further and more frequent cuts – with some predicting three or even four more cuts in 2025. While there’s no question that President Trump’s trade war has forced the central bank to act with some urgency, so have fears around inflation and both business and consumer confidence – particularly in response to higher taxes and costs.

“Either way, movement on the base rate is absolutely welcomed and will certainly help to stimulate demand. Given the certainty around today’s news, we’ve already seen swaps respond positively and lenders re-price, with the competition for market share likely only to increase with future moves. If not already, now is the time for brokers to mobilise – to get out into their local area to share this update. It’s so easy to get bogged down by the news right now, when in fact we can share something really positive with the many who have the appetite to buy, but need help navigating the market.”