A member of the Bank of England’s Monetary Policy Committee expects up to three interest rate cuts this year, citing easing inflation and a weakening labour market. The comments from Alan Taylor suggest landlords may see further mortgage cost relief by the end of 2026.
Inflation normalising as jobs market softens
Taylor, an external member of the MPC, made the comments while speaking to City bankers and analysts ahead of a Treasury Select Committee hearing. He described the jobs market as “converging on a pessimistic outlook” and said he was “more reassured that we are proceeding towards inflation normalisation at a reasonable pace.”
Official figures last week showed CPI inflation easing to 3 percent in January from 3.4 percent in December, driven by lower petrol prices and cheaper food and airfares. Taylor suggested inflation might even undershoot the Bank’s 2 percent target.
“We might have two or three rate cuts to go before the theoretical neutral level,” Taylor said. If his prediction proves correct, the base rate could fall from its current 3.75 percent to around 3 percent by the end of 2026.
Services inflation and external risks remain
Taylor warned that services inflation remains an area policymakers are watching closely because of its link to wages and domestic demand. He also flagged external risks, noting that the US had moved into a “high tariff regime” that could play out over several years.
Taylor has been one of the more dovish voices on the MPC, often backing larger rate cuts than his colleagues. His comments do not represent official Bank policy but offer insight into one committee member’s thinking ahead of future rate decisions.
For buy-to-let landlords with variable rate or tracker mortgages, further cuts would translate directly into lower monthly payments. Those on fixed rates coming up for renewal later in 2026 may find more competitive deals if Taylor’s forecast holds. The Bank’s next rate decision comes on 20 March, with MPC meetings scheduled throughout the year.
Landlords reviewing their mortgage arrangements can explore current buy-to-let mortgage options as lenders adjust pricing in anticipation of further base rate movements.
Editor’s view
One MPC member’s view does not make policy, but Taylor’s comments confirm the direction of travel. For landlords who have endured two years of high rates, relief is coming – the question is how quickly. Those remortgaging in the coming months should factor in the possibility of lower rates when comparing fixed versus tracker products.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 26 February 2026
Sources: Bank of England, City A.M.
Related reading: Interest rate cut boosts landlord confidence as new tracker mortgages launched
