Bank of England Base Rate remains at 5%

Yesterday, the Bank of England’s Monetary Policy Committee (MPC) voted to keep the base rate at 5%. The MPC vote was 8 members in favour of unchanged rates and 1 in favour of a cut.

Inflation in August was at 2.2%, so the base rate was widely expected to stay the same. The Bank of England expects the inflation rate to rise temporarily to 2.5% by the end of 2024, before falling again in 2025. 

Mortgage lenders continue to reduce their rates as their confidence increases,for both new purchases and those re-mortgaging. Borrowers are now able to select two and five year fixed rates under 4%.

Official UK interest rate graph 2024 (https://commonslibrary.parliament.uk/).

The results of the next scheduled MPC meeting will be announced on the 7th of November 2024.

This article isn’t personal advice. If you’re not sure whether a course of action is right for you, ask for financial advice.