Bank of England interest rate decision - OSB Group comments

18 June 2026

Adrian Moloney, Group Lending Distribution Director, OSB Group, comments on today’s Bank of England interest rate decision:

“The Bank of England's decision to hold the base rate at 3.75% provides a degree of reassurance, but it also highlights the complex balancing act facing the MPC.

While inflation has shown encouraging signs of easing with April’s CPI at 2.8%, the trajectory back to target remains uncertain, particularly given the potential for renewed pressure from energy costs. Against this backdrop, today’s decision signals caution rather than clarity.

For the mortgage market, a hold on rates is unlikely to drive any immediate change in pricing. Lenders continue to take their lead from swap rates and forward expectations. Affordability remains stretched, especially for those approaching the end of fixed-rate deals and facing a markedly different refinancing environment. As a result, early engagement and access to specialist, structured broker advice will be increasingly important.

Within the buy-to-let sector, landlords are still adapting to a higher cost of borrowing, which continues to influence both investment decisions and rental dynamics. While the market has demonstrated resilience, it remains finely balanced, with sentiment closely tied to expectations around the future path of interest rates.”