Bank of England holds base rate at 5.25% for the fifth time

MSE_Molly_G

The Bank of England has held the base rate at 5.25% for the fifth time in a row. This rate is used by the central bank to charge other banks and lenders when they borrow money – and so it influences what borrowers pay and what savers earn.

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Bank of England holds base rate at 5.25% for the fifth time – here's what it means for your savings and mortgage

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Zopa_Trooper

I wonder whether savers rates will continue to spiral down, despite no movement from the BoE.

MEM62

Are they?  .

ranciduk

Zopa_Trooper said:

I wonder whether savers rates will continue to spiral down, despite no movement from the BoE.

Without any shadow of a doubt

the banks I use started lowering their rates immediately after the first freeze

Hoenir

They've got to be able to lend this money out in a profitable way. There's no free lunch. 

boingy

Hoenir said:

They've got to be able to lend this money out in a profitable way. There's no free lunch. 

That will be the banks who are all reporting record profits then.

Zopa_Trooper

As the rate went up, so did our savings rates, so as it comes down, you would expect the savers rates to follow. But why should they drop when the BoE rate doesn't move? It didn't last month yet they started to drop, so it will be interesting to see if they drop further this month.

boingy

Zopa_Trooper said:

As the rate went up, so did our savings rates, so as it comes down, you would expect the savers rates to follow. But why should they drop when the BoE rate doesn't move? It didn't last month yet they started to drop, so it will be interesting to see if they drop further this month.

Most savings rates didn't go up, just a select few to get a headline rate. Most of their customers were left languishing in 1% to 2% accounts. Mostly, savings rates are slow to rise and quick to fall. I think it's because all banks are inherently evil. Either that or it's just because they can get away with it.