Base Rate cut comment by Afin Bank

18 December 2025

Charles Resnick, Chief Finance Officer at Afin Bank, commented:

“The Bank of England is walking a bit of a tightrope at the moment, balancing its aim of returning inflation sustainably to its 2% target, below the current rate of 3.6%, while being cautious not to ease policy too quickly while domestic cost pressures persist.

“Although today’s cut to the Base Rate was not a surprise, it could easily have gone the other way with interest rates left unchanged. You only have to look at the last MPC meeting in November, when the vote was 5-4 in favour of keeping the rate flat, to see there is a difference of opinion within the committee. The minutes from today’s meeting will be interesting.

“Mortgage lenders are expected to remain disciplined, reflecting ongoing uncertainty around the pace of further cuts given the MPC’s emphasis on a cautious, data-dependent easing cycle.”

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