Phoebus comment on interest rates

19 June 2025

Richard Pike, chief sales and marketing officer at Phoebus Software says:

“Today’s decision by the Bank of England to hold interest rates at 4.25% is not unexpected given the persistent inflationary pressures and broader economic uncertainty both globally and here in the UK. While some had hoped for a continued trajectory of rate cuts following May’s reduction, it’s widely expected they will come later in the year. The MPC is clearly taking a cautious approach in light of stubbornly high inflation, particularly in essential areas like food, and ongoing global tensions impacting commodity prices.

“For the mortgage market, a pause in rate cuts may not move the dial significantly in the short term. Fixed mortgage rates have already stabilised in recent weeks, and today’s hold is likely to reinforce that pattern. However, for lenders and borrowers alike, the prospect of rate cuts being delayed further underlines the importance of planning for a higher-for-longer interest rate environment.

“The market has adapted remarkably well over the past year, and technology will continue to play a key role in helping lenders maintain efficiency and flexibility. While today’s decision may temper expectations, it also reinforces the need for robust systems that can support brokers and borrowers through uncertain times.”