MPC decision commentary: Fix now or opt for a tracker in the hope of further cuts dilemma

08 May 2025

Fix now or opt for a tracker in the hope of further cuts dilemma: Rob Clifford, Chief Executive of Stonebridge, comments on this afternoon’s MPC decision

This rate cut is the clearest sign yet that the Bank of England fears serious economic fallout from Donald Trump’s tariff threats – and is acting decisively to shore up the economy.

After being accused of acting too slowly on inflation, the Bank is clearly aware that it can’t afford to fall behind the curve again, which is why it is taking pre-emptive action now.

While some market watchers remain concerned about inflation, we believe those fears are often overplayed. Much of the UK’s current price pressure is imported, not home-grown, which gives the Bank the space to cut rates without reigniting inflation.

This won’t be the last move we see. We expect at least two more cuts this year – especially if Trump follows through with his most extreme tariff plans.

Today’s cut will be welcome news for borrowers, as mortgage rates should fall noticeably by the summer. But it also presents a dilemma for them today: fix now or opt for a tracker in the hope of further cuts?

In moments like these, mortgage advisers have a real opportunity to step up as trusted experts. It’s not just about finding the most competitive deal today — it’s about providing ongoing guidance, navigating uncertainty, and being ready to act when the market shifts again. That’s the kind of long-term value customers will truly remember.