Frances Haque, Chief Economist at Santander UK responds to the Bank of England's base rate announcement

18 September 2025

Frances Haque, Chief Economist at Santander UK comments:

"There were no surprises in today’s MPC meeting. With the labour market stabilising, wage growth remaining at rates that are inconsistent with the inflation target and inflation expectations rising, a cut this time round was never realistically on the cards.

“The minutes suggest that the bar for further reductions in Bank Rate this year remains high. Yet the mortgage market continues to show resilience: last week brought a notable increase in overall market size, with approvals holding firm. Coupled with ONS data showing house price growth slowing and mortgage pricing staying close to recent lows, conditions this year appear to be firmly in favour of buyers.

“Overall, the housing market has demonstrated considerable resilience and, so far, has not been hit as hard as might otherwise be expected in a period of such economic uncertainty.”