Bank of England holds base rate at 5.25% for the sixth time in a row

MSE_Molly_G

The Bank of England has held the base rate at 5.25% for the sixth 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.

Read the full story:

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

If you haven't already, join the forum to reply.

la531983

MSE_Molly_G said:

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

Save everyone time - absolutely nothing.

cymruchris

la531983 said:

MSE_Molly_G said:

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

Save everyone time - absolutely nothing.

Savings rates have in recent months begun a downward trend even without a BOE movement. So even them holding rates is having an impact - as the banks are pricing in their best guesses, and not necessarily getting it right. So a non-movement today might hold rates for savers a little longer, and mortgage rates might even rise a little if they think the drop is going to be later. So I wouldn't say it's 'absolutely nothing'.

Middle_of_the_Road

la531983 said:

MSE_Molly_G said:

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

Save everyone time - absolutely nothing.

Very poor MSE report. Could have mentioned the 7 to 2 vote in favour of holding the rate.

boingy

Yesterday Metro emailed me to say that the "Limited Edition" rate on my savings will be cut again in July, this time by just over 1% to 3.95% AER. They cut it last month too but only by 0.25%.
At least they are giving me plenty of notice I suppose.

Futuristic

Bailey just said at the press conference he doesn't think money markets are pricing in the higher amount of rate cuts BoE expect to do so there should be more cuts this year than markets price. I think after next months meeting we can expect even more rapid reductions to saving acc. 

Hoenir

Futuristic said:

Bailey just said at the press conference he doesn't think money markets are pricing in the higher amount of rate cuts BoE expect to do so there should be more cuts this year than markets price. I think after next months meeting we can expect even more rapid reductions to saving acc. 

People are borrowing less. Mortgage repayments are exceeding new mortgage advances. Less requirement for savers money.