Frances Haque, Chief Economist at Santander UK responds to the MPC's base rate decision

17 September 2026

Frances Haque, Chief Economist at Santander UK, commented:

"While data from earlier in the week raised some concerns around rising inflation and a loose labour market, stable unemployment figures and private sector pay growth meant the Bank had some scope to wait before raising rates in today's meeting."

"The decision to hold will be welcome news for homeowners - particularly those with a tracker mortgage, or many of those nearing the end of their five-year fixed rates from post-Covid lows. The housing market is still showing signs of resilience, with house prices rising 1.4% year-on-year, according to the official house price data released on Wednesday."

"With the MPC's next meeting falling just after the Chancellor's budget, what's to come next remains uncertain. That said, with inflation now sitting above 3% and energy prices continuing to edge up, the case for a rate hike before the end of the year is becoming stronger."