Phoebus reaction to base rate hold

18 June 2026

Richard Pike, Sales and Marketing Director at Phoebus Software, said:

"A decision by the Bank of England to hold the base rate was widely expected, particularly following yesterday’s inflation figures. Markets had largely priced in the decision, and lenders have been competing strongly for business.

Looking ahead, much will depend on whether inflation continues to ease over the coming months. Recent falls in oil prices following developments in the Middle East could help reduce some inflationary pressures further down the line, potentially giving the Bank more room to continue its gradual easing cycle. But for now, holding rates steady represents a sensible balance between supporting growth and maintaining confidence that inflation will return sustainably to target.

"The underlying picture for the housing market remains positive. Demand has proven resilient, lenders are continuing to innovate, and competition is supporting attractive mortgage pricing. The challenge for many borrowers is no longer simply the cost of borrowing, but affordability and access to the right products."