The Bank of England has held the base rate at 4.5%.

The bank rate was cut from 4.75% to 4.5% in February after being held at 4.75% at the end of 2024.

Last week, the market predicted that the bank would hold at 4.5% after looking at the UK economy, fears of a global trade war and the Chancellor’s Spring Statement.

The economy contracted by 0.1% in January, which was weaker than forecast, driven by a decline in manufacturing, according to official figures.

Economists had predicted growth of 0.1% in January, after a 0.4% uplift in December.

But a less volatile three-month reading shows the economy was estimated to have grown by 0.2% up to January.

Mortgage market reaction to follow…