Base Rate Comment - Afin Bank

18 June 2026

Following today's base rate announcement from the Bank of England, Charles Resnick, Chief Finance Officer, Afin Bank, commented:

“No surprise that the Base Rate was held today, but it’s a case of rate cuts remaining delayed rather than being cancelled as the Bank of England waits for evidence that inflation is easing.

“Yesterday’s news that CPI was holding steady at 2.8% was a surprise, so that has helped reduce near-term pressure to increase the Base Rate. However, inflation is still expected to rise over the summer as the Ofgem price cap increases.

“With lower oil and gas prices pointing to a less severe peak, the question is how much of that energy shock will feed into prices and wages. The Bank of England’s Monetary Policy Committee will look for a clearer indication that second-round effects are contained.

“Lenders are likely to remain cautious, with higher funding costs, subdued housing demand and elevated macro uncertainty limiting scope for repricing, but policy uncertainty should keep swap rates and lender pricing disciplined.

“For savers, fixed-term deposit prices continue to be significantly higher than the Base Rate, providing an opportunity for customers looking to put their cash away for a while.”

For more information about Afin Bank visit www.afinbank.com follow it on LinkedIn and @AfinBankUK on X and Instagram.