What is the Bank of England’s Decision?

 

The Bank of England’s decision to keep the base rate at 0.75% was widely expected by economists. However, some had predicted that the Bank might cut rates in order to boost the economy in the face of Brexit uncertainty. The base rate is the interest rate that the Bank of England charges banks and other financial institutions for borrowing money. This rate is passed on to consumers in the form of higher interest rates on loans and mortgages, and lower interest rates on savings accounts. The Bank of England’s decision to keep the base rate at 0.75% is good news for borrowers. Mortgage rates are unlikely to increase in the near future, which will help to keep monthly repayments affordable. However, savers may be disappointed as it means that interest rates on savings accounts are also likely to stay low. If you’re thinking of taking out a loan or mortgage, now could be a good time to do so while rates are still low. However, if you’re a saver, you may want to consider switching to a higher-paying account if you’re not happy with the interest rate you’re currently getting.