Interest rates expected to be held again by Bank of England
📰 source: bbc_business · 💼 business
the bank of england is expected to hold interest rates at 3.75% for a fifth time, with policymakers citing uncertainty over the global political and economic outlook, and the impact on prices. the monetary policy committee (mpc) will announce its decision at 12:00 bst, and a hold is widely anticipated.
the uk inflation rate was 2.6% in june, down slightly but still above the 2% target. inflation may rise in july due to a 13% increase in domestic energy prices, driven by the iran war. the conflict in the gulf and uncertainty over a truce hang over the mpc's decision.
a hold would leave tracker mortgage payments unchanged, but fixed-rate mortgages are rising. the average two-year fixed deal is now 5.62%, the highest in over a month. savers see some benefit, with the top one-year bond paying 4.91%, the highest since october 2024.
why it matters: uk central bank holds rates amid inflation above target and middle east conflict, impacting mortgage costs and savings yields for millions.
source: bbc_business
sentiment: +0.00 · impact: 0.60