Bank of England Holds Interest Rates

Published / Last Updated on 09/05/2024

The Bank of England has held base rates at 5.25%, this is the 9 consecutive rate ‘hold’ since it increased rates by 0.25% in August 2023.  This will give joy to savers getting higher returns on their cash savings but no joy to people remortgaging or those looking to get on the property ladder.

Bank of England Governor, Andrew Bailey said that there was a majority vote of 7:2 by the Monetary Policy Committee to hold rates but that their position was softening as the UK economy has grown marginally i.e., we are not in recession but only just.  He also suggested that the Bank will not follow the Federal Reserve nor is it restricted by politics or stock markets.  It’s role is to control inflation and when that falls again, we can expect rates to fall.


We have long said that when rates fall, bond and fixed interest investment and pension funds will rise as well as stock markets setting new records.  Stock markets are already setting new records and bonds yields have fallen, meaning some bond and fixed interest fund growth.

We have also said that we do not expect rates to be cut until Autumn but, if we are a month or 2 out, they may even be cut in the Summer.  Sit tight, things will get better.

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