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

30 April 2026

Frances Haque, Chief Economist at Santander UK comments:

"Given the ongoing uncertainty of the conflict in the middle east and its impact on the economy, it made complete sense that the MPC decided to hold rates today. From the data released last week, we can see the conflict is beginning to have an effect on inflation, which will inevitably be a concern for MPC members. But, with unemployment falling on one side, and more near-term data showing declining payrolls and wage growth slowing on the other, there’s still a mixed picture being painted in terms of the outlook.

“Despite a somewhat mixed backdrop, the UK housing market remains strong, with both applications and house prices holding steady according to recent HM Land Registry data. Rate cuts across the mortgage market have provided some light relief for borrowers, particularly for those coming off a fixed rate in the next three to six months. In terms of Bank Rate, what the MPC decide to do next is still very data dependent, but the cuts that markets had originally predicted for 2026 are looking rather unlikely compared to a couple of months ago.”