Adam Oldfield, chief revenue officer at Phoebus, says:

“Sticking at 5.25% has its own rationale. Concern remains high around the ongoing issues of a tight labour market and wage growth settlements, which continue to outpace inflation – despite its slowing and then yesterday dipping to 3.4%, which is still a way off the Bank of England’s target of 2%.

“The US central bank made a similar decision yesterday, holding their key interest rate between 5.25% and 5.5% – the highest it’s been in more than two decades. Like the UK, the US market is also anticipating a rate cut later in the year. But for now, caution seems to be the way to play it. A lot of lenders are questioning the sagacity of that, with the worry being that when a cut does come, it will be too little too late.”