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While the data may dampen hopes for more mortgage rate cuts, some brokers have said it provides "a degree of stability for borrowers and lenders".

Joseph Lane, founder and director of brokerage experts Mortgage Lane, said: "Whilst many will have hoped for another reduction to be announced on Thursday, the Bank of England's prediction decision to hold at 4% provides a degree of stability for borrowers and lenders alike.

"For homeowners and first-time buyers, this could mean a more predictable mortgage market over the coming months, with lenders likely to maintain competitive fixed and tracker products."

For buy-to-let landlords, Mr Lane said the steady base rate offers "breathing space" after years of volatility.

He said: "Margins have been under strain from higher borrowing costs and tighter regulation, but a stable rate should allow landlords to plan with greater confidence, whether that's refinancing existing deals or exploring expansion."

He continued: "While a base rate hold won't transform affordability overnight, it offers the consistency that the market has been craving. Those who take a strategic, well-advised approach will be best placed to thrive."

Charlie Ambler, co-chief investment officer and partner at wealth management firm Saltus said: "All signs point towards a hold in the base rate this week, and previous expectations of one or two further interest rate cuts this year now look unlikely. Despite this, Thursday's decision could be an opportunity to reassure the markets that the Bank will not deviate from its long-term plan.

"Ahead of November's Budget, where the Chancellor is expected to announce further tax hikes, the Bank has an opportunity to provide certainty for investors in the interim. However, with inflation unlikely to return to the 2% target until the second quarter of 2027, any forward guidance will likely remain cautious."

He added: "For investors, a single meeting should not drive strategy. Stay diversified, manage cash and gilt exposure carefully, and make full use of tax allowances ahead of the Autumn Budget."

The Bank of England's Monetary Policy Committee (MPC) will announce the Base Rate decision on Thursday, September 18 at 12pm.

Bank of England poised to hold interest rates at 4%