The Bank of England kept interest rates at 4.5% today amid fears that inflation is still a threat.

The Monetary Policy Committee decided to keep the Bank Rate on hold after cutting it from 4.75% to 4.5% last month.

It is down 0.75 percentage points from the 5.25% peak seen in August last year.

The next decision will be announced on May 8, with much depending on what happens to inflation.

Concerns about inflation rising again have emerged due to a changing domestic and global backdrop, including new trade tariffs.

What does this mean for landlords?

Today’s decision to hold rates may be regarded as bad news for landlords with mortgages, who were hoping to see their monthly repayments drop.

Ryan Etchells, of specialist property lender Together, said: “It’s disappointing but expected that the Bank of England has employed a wait-and-see strategy by holding rates, rather than providing a much-needed boost to UK borrowers, investors, and developers.”

And Mark Harris, of mortgage broker SPF Private Clients, said: “As expected, the Bank of England voted to hold rates at 4.5 per cent this month. However, while predictable, the decision is disappointing as another rate reduction would help boost the housing market and wider economy, particularly as the stamp duty concession comes to an end this month.

“While the Bank remains concerned about rising inflation and sees it as a threat, the oncoming headwinds would appear to be stronger.

“The Bank must be proactive - by acting sooner rather than later and introducing further rate reductions, the money markets will shift expectations and swap rates should fall, which in turn will mean cheaper mortgage rates for borrowers.”

Concerns about inflation

Jeremy Leaf, north London estate agent and a former RICS residential agent, said: “As expected, interest rates have remained at their 18-month low of 4.5 per cent. It seems concerns over the direction of travel for inflation, as well as volatility arising from the decisions by the US to raise trade tariffs, have outweighed the desire from the MPC to arrest the recent fall in GDP and confidence generally.

“Worries about the fallout from imminent increases in national insurance and the minimum wage are certainly weighing heavily on some when considering taking on extra debt.

“However, activity has remained relatively resilient recently and prices, though softening a little, have held up well, particularly for houses.”

Meanwhile, Jason Tebb, of OnTheMarket, said: “While a hold in rates will be disappointing for borrowers, it does suggest a welcome level of stability which was not apparent when inflation was in double-digits and the Bank was forced to respond with consecutive rate hikes.

"The trajectory for interest rates is downwards, but with global uncertainty and inflationary pressures these reductions may take longer to filter through than the markets previously thought. The base rate reductions we have seen since August have boosted activity and transactions in the market, and further cuts, when they come, will bolster confidence."