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Bank of England announces interest rate decision

The Bank of England has left its base interest rate unchanged at 5.25 per cent.

Its Monetary Policy Committee, which decides the rates, voted by a margin of 6-3 to keep them at 5.25 per cent; three members preferred to increase base rate by 0.25 percentage points, to 5.5 per cent.

The 'hold' was widely anticipated by economists and financial markets. In a statement this afternoon the Bank says: "Whilst this means many people will be facing higher borrowing costs, it is necessary to prevent high inflation lasting a long time."


The Bank had previously raised rates 14 times in a row to tame inflation, leading to increases in mortgage payments but also higher savings rates.


In reports issued along with the base rate decision, the Bank says it expects a sharp slowdown in the pace of price rises in the coming months.

But governor Andrew Bailey says that nonetheless: “It’s much too early to be thinking about rate cuts" with rates set to stay high "for an extended period of time”.

And Bailey warns: “We’ll be watching closely to see if further rate increases are needed.”

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    Not surprised 👍🏻

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    No surprise and will stay high for a while.


    5.25% isn't really high, it's about right and where interest rates should be

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    A glimmer of good news in an otherwise gloomy outlook for landlords (and tenants)

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    I was always paying 2.5 / 3% above Base Rate which was usually around 5% all on Commercial Repayment loans and taxed on the Repayments. At one time it went up to 17%, so you guys with buy 2 let interest only loans, 1 / 2% or less don’t know you were born and at a time capital values were doubling.


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