The Bank of England voted to keep interest rates at 4.5% in the face of higher wage demands and trade uncertainty brought about by the global tariff war caused by US President Donald Trump.
The bank's Monetary Policy Committee rate setter voted to hold 8-1, with outside members and longtime pigeon Swatidingra seeking a quarter-point cut. 
Policymakers repeated a “gradual and careful approach” to the minutes of their March decision.
“Large or long-term weakness in demand for supply” said it could push inflation down and lead to further reductions.
However, “more constrained supply related to demand and greater sustainability of domestic wages and prices” leads to more strict monetary policy.
Currently, the cost of living is 3%, exceeding the central bank's 2% target.
The market is hoping for two more interest rate cuts this year.
Rate-Setters said since its February meeting, “the uncertainty in global trade policy has been strengthened, and the US has created the scope of its tariff announcements.”
Furthermore, growth estimates were “slightly stronger than expected” in February, but since then, business research has added that “suggesting weakness in growth, particularly employment intentions.”
“Domestic prices and wage pressures have been eased, but they remained slightly higher,” he added.
Today's salary data shows that the average normal revenue growth for employees, excluding bonuses, was 5.9% from November to January 2024.
Rate setters have long said they want to see wage growth falling below 5%.
The committee reiterated that it expected global energy prices to boost inflation to 3.7% in the third quarter of the year before retreating.
“Home prices and mortgage lending have continued to recover over the last few months. Home buying mortgage approvals have been widely flat at a relatively strong level since last August.”
“We've been working hard to get the most out of our business,” said David Hollingworth, Associate Director, L&C Mormages.
“The Bank of England has consistently suggested that interest rates could fall further, adding three cuts since last summer.
Hollingworth adds: “As a result, fixed fees are already priced further down the base rate, but this is expected to be a gradual process. Unless there is a significant change in the bank's message, mortgage rates should remain relatively stable over the near term.”
Chief Commercial Officer Ryan Etchells said: “It's a shame, but we expected the Bank of England to adopt a strategy that we saw as a wait by keeping the rate rather than providing much needed boosts to UK borrowers, investors, developers and small businesses.”
“We are pleased to announce that we are committed to providing a range of services to our customers,” said Mark Harris, CEO of SPF's Private Clients.
“Banks must be proactive, and by acting faster than later and introducing further interest rate cuts, the money market should change expectations and the swap rate should fall.
Nicholas Mendes, technical manager of John Charcole Added: “While the possibility of new tariffs is unstable, the UK government's upcoming spring statement can introduce further fiscal tightening and increase the challenges facing businesses and households.
“The bank's decisions show a preference to stabilize monetary policy until there is clearer evidence that inflation is being sustainably eased.”
Eight members voted: Andrew Bailey, Sarah Breeden, Megan Green, Claire Lombardeli, Katherine Mann, Who Pill, Dave Ramsden and Alan Taylor.
Swati Dhingra voted to cut bank fees by 0.25% and 4.25%
