Bank rate maintained at 5.25% – March 2024
In its latest review, The Bank of England has opted to maintain the interest rate at 5.25%, marking the fifth consecutive instance without change.
The central bank’s Monetary Policy Committee (MPC) reached a majority decision of 8-1 in favour of this course, with a single voice advocating for a reduction in rates.
Andrew Bailey, the head of the Bank of England, commented on the decision, indicating that while it is not the appropriate time for a rate cut, the economic indicators are trending positively.
This decision has direct implications for both borrowers and savers. A higher base rate generally leads to more expensive mortgages, impacting those with variable or tracker mortgages. Conversely, savers might benefit from higher interest rates, as banks could increase the interest offered on savings.
Interest rates remain the Bank’s principal mechanism for controlling inflation — the measure of how prices rise over time. UK inflation, having reached a peak in October 2022, has since declined and currently stands at 3.4%, which is still above the Bank’s target of 2%.
Read more: Bank rate maintained at 5.25% – March 2024
