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

19 March 2026

Frances Haque, Chief Economist at Santander UK:

"The MPC chose to proceed with caution today, as expected, until the outlook regarding the Middle East conflict and inflation becomes clearer. With lower growth, a looser labour market and rates still slightly restrictive, this should help to stabilise the impact of inflation and any second-round effects, so while cuts may be put on hold, hikes are less likely as we look ahead to 2026."

"After a steady start to the year in the housing market, the changing economic backdrop has meant swap rates have climbed; in the short-term, we have seen a huge spike in activity in the market, with borrowers racing to lock in their mortgage ahead of anticipated rate rises. Looking ahead, while the delay to rate cuts will impact consumer confidence, and in some cases affordability, it's important to note that this period of adjustment in the market will reduce competitive pressure and, in some cases, drive house prices down."