Interest Updates: The Bank of England have Cut Interest Rates despite predictions of rising inflation.
The Bank of England has lowered the base interest rate to 4%, marking the first drop since March 2023. Despite inflation and food price concerns, the rate cut reflects slowing wage growth and greater global economic stability. Governor Andrew Bailey warns that future cuts will need to be made gradually. Our Mortgage Protection Adviser, Nicola Henton, shares her advice for those navigating the market during this shift.
The Bank of England have once again met to discuss the interest rate, and they have cut the interest rate to the lowest it has been since March 2023. The interest rate has dropped from 4.25% to 4% despite the predictions of rising inflation and food prices.
This drop is a signal of slowing wage inflation and slightly more certainly around the impact that US tariffs are having on the global economy.
In a surprising turn of events, the nine-person committee had to take a second vote on their decision for the first time in history.
Governor Bailey, who led the second vote today, stated:
"Interest rates are still on a downward path, but any future rate cuts will need to be made gradually and carefully."
Here's what our Mortgage and Protection Adviser Nicola Henton said about the interest rate drop:
"While today's interest rate decision was widely anticipated, it's a clear reminder of the ongoing balancing act between curbing inflation and supporting economic growth.
"For homeowners and buyers alike, it's never been more important to seek the right financial advice and stay informed."
To speak to our team about the updated interest rates or to begin your mortgage journey, contact us at:
Tel: 0800 292 2557
Email: Hello@hellomortgage.co.uk
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