Are we all braced to be working through our spreadsheets for the, probable, base rate change?

Sarahspangles

I’m just going to assume all the accounts that we hold, that have a variable interest rate, will fall 0.25%. If they don’t, or react slowly, that’s a bonus.

TooOrangeyForCrows

Sarahspangles said:

I’m just going to assume all the accounts that we hold, that have a variable interest rate, will fall 0.25%. If they don’t, or react slowly, that’s a bonus.

Plum have lowered their Cash ISA rate straight away  

"The Bank of England today lowered its base rate by 0.25 percentage points from 4.75% to 4.5%, which impacts the interest rates that providers like Plum can offer. So when changes like this happen, we have to review our rates.

That means we’re reducing your Plum Cash ISA interest rate by 0.25 points in line with the base rate change. From tomorrow (Friday 7 February), you’ll start earning interest at the new rate on your Cash ISA. The bonus section of your Cash ISA rate is unaffected.*"

GazzaBloom

The reduction in interest rates has a small effect on my cash savings but it pales in significance to the gains made through the pound dropping against the dollar after the rate change yesterday and the resulting revaluation of my investments in US stocks and shares.

Piddling about chasing rates on cash savings is like fishing about down the back of the settee looking for small change.

Section62

GazzaBloom said:

The reduction in interest rates has a small effect on my cash savings but it pales in significance to the gains made through the pound dropping against the dollar after the rate change yesterday and the resulting revaluation of my investments in US stocks and shares.

Piddling about chasing rates on cash savings is like fishing about down the back of the settee looking for small change.

Finding 50p down the back of the sofa can be every bit as enjoyable as making a paper gain of 2% on the S&P500.

For some of us here the game of finding the best rates and managing a portfolio of accounts is the payback, the few extra pounds earned is nice, but not always the point.  Tomorrow I might get bored with the game and start collecting beermats instead.  There might be one or two of those down the back of the sofa as well.

ColdIron

ColdIron said:

They have updated the rate on their update page but not the .pdf that contains the rates and 'effective from' date

https://www.skipton.co.uk/base-rate-change

Skipton have now updated their base rate tracker rates in a new .pdf, effective from 10/02/2025 and my new rate is now displayed for my tracker account

https://www.skipton.co.uk/content/dam/sbs-sites/skipton-co-uk/documents/help-and-support/extra-support/base-rate/changes-to-tracker-accounts.pdf

DiamondLil

GazzaBloom said:

fishing about down the back of the settee looking for small change.

Done that a few times in the past too.

MiserlyMartin

GazzaBloom said:

The reduction in interest rates has a small effect on my cash savings but it pales in significance to the gains made through the pound dropping against the dollar after the rate change yesterday and the resulting revaluation of my investments in US stocks and shares.

Piddling about chasing rates on cash savings is like fishing about down the back of the settee looking for small change.

That could work against you if the £ goes back to £2 for a $, well we live in hope. This all depends on if you think the £ is toast or not against the $ for the forseeable. I thought that the £ would fall like it did in 2008 against some foreign currencies and I exchanged 15k into them. Although I'm getting a good rate of interest the currency has fallen by more against the £, so I'm making a real terms loss and being taxed for a gain!

simonsmithsays

Well the latest inflation figures mean we'll probably not have to worry about a further cut (and rejig) next month

boingy

I was surprised at the latest rate cut given that in the same meeting they stated that inflation was expected to rise. 

Hoenir

boingy said:

I was surprised at the latest rate cut given that in the same meeting they stated that inflation was expected to rise. 

Base rate changes take some 18 months or so to filter through to the real economy.  Remember also that QT chugs away quietly in the background sucking liquidity out of the banking system. A factor that keeps upward pressure on lending rates.