Related topic: Bank of England

An extended hold to interest rates is "very much the correct and appropriately measured policy response", Taylor said.

A hold was widely predicted after UK CPI inflation held steady at 2.8% in May.

The surprise inflation figures "could trigger a mortgage price war", industry experts predict.

As a result, many expect the Bank of England to adopt a 'wait and see' approach to interest rates at its meeting next week.

The latest Bank of England mortgage market data shows new commitments rising 11.5% quarter-on-quarter to £78bn, even as gross advances fell sharply, with stamp duty distortions...

Greene has hinted at future rate rises, arguing for a 'proactive approach' to growing inflation.

Despite approvals holding up, net mortgage borrowing dipped in April following a strong Q1.

Bailey believes the Bank has already effectively tightened monetary policy by taking the prospect of future rate cuts off the table.

Despite the surprise ease in inflation, industry experts say the fall is unlikely to be sustained.

The IMF has upgraded GDP from 0.8% to 1% for 2026, but warns that domestic and international risks remain.