Bank reveals latest interest rate decision

Thu 09 May 2024

The Bank of England has again decided to freeze the base interest rate at a 16-year high of 5.25%.

In a split vote, the Bank’s Monetary Policy Committee decided by 7-2 to retain the same rate until its next meeting on 20 June.

In March, the committee also froze the rate with an almost unanimous vote even though inflation fell to its lowest level in more than two years at 3.4%, and later 3.2%.

UNDER CONTROL

Andrew Bailey, the Bank’s Governor said the interest rate can be reduced once inflation is clearly under control.

This all set against a background of rising mortgage costs as the Bank has stuck to its policy of waiting for inflation to fall.

Late last month, a clutch of lenders including Barclays, HSBC, and NatWest, confirmed they would be increasing their lending rates, piling further pressure on home buyers and remortgagers.

5-YEAR FIXED RATE

And the latest tracker data shows mortgage rates going up, with the average 5-year fixed mortgage rate now above 5% for the first time since January.

The average 5-year fixed mortgage rate is now 5.02%, up from 4.56% a year ago, and the 2-year fixed rate is now 5.41%, up from 4.84%.



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