Published: 04/05/2025
Mount & Minster has predicted an announcement to be made on the 8th May from the Bank of England that will set the wheels in motion to significantly reduce the costs associated with most homeowners biggest monthly outgoing... their mortgage.
As one of the leading real estate firms in the East Midlands, our research indicates that the Bank of England will reduce the base rate by 0.25% on the 8th May; from 4.5% down to 4.25%.
This will just be the beginning. We anticipate interest rate cuts on both the 19th of June and the 7th August, with at least one of these dates potentially seeing an instant cut as high as 0.5%.
The research carried out by Mount & Minster estate agents suggests that external pressures, notably from the US-China tariff dispute, will weigh heavily on UK economic growth, this being the catalyst to the Bank of England to make the cuts mentioned above. The recent drop in inflation, which fell unexpectedly to 2.8% in March, has also raised hopes for further rate cuts.
Ralph Wyrley-Birch, Senior Partner at Mount & Minster, states: 'Despite the Bank of England’s Monetary Policy Committee voting a few weeks ago by a majority of 8-1 to maintain the current rate, our colleagues within the firm anticipate a continued decline of UK inflation, forcing the Bank to entertain a different perspective while taking into account economic difficulties in the current climate.'
He continues: 'The Bank’s target inflation rate remains at 2%, and much of its decision-making will hinge on the upcoming inflation figures for April, due to be released on 21st May. These numbers will provide clearer guidance on the Bank’s next steps in steering the UK economy. Although we'll already have had an initial decision in May before these inflationary figures are published, it may be that the Committee refer to this data towards the end of the month and slash the rates further, by as much as 0.5%.'
Mount & Minster estate agents have projected end of year figures (2025) coming down from the 4.5% at the time of writing, to as low as 3.5%, but 3.75% at the most. These will reduce further over 2026 we believe.