The Bank of England has voted to keep the base rate at 5.25%.
This is the sixth time in a row the interest rate has been kept at 5.25%, and means things like mortgages and loans will remain at high levels compared to the previous few years.
But, if you’re lucky enough to have savings, you should keep the high interest rate too, and keep pocketing that cash (if you’re not, check out the best savings accounts).
The governor of the Bank of England said the bank needs to see ‘more evidence’ of inflation falling before cutting the base rate – but he is ‘optimistic’ about cutting rates in the future.
Inflation is the rate of things rising in price (like food and fuel), and the current inflation rate is 3.2%. The bank has a target to get this to below 2%, which they do by increasing the interest rate (among other things).
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