Base rate held AGAIN at 3.75%

MSE_Emily

The Bank of England has held the base rate for the FIFTH consecutive time at 3.75%. We explain why, the latest predictions for when it could change, plus what it means for your mortgage and savings.

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Base rate held AGAIN at 3.75%

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El_Torro

I don't see much reason / incentive for the base rate to drop before the shenanigans in the Middle East comes to an end. As for raising interest rates, I see little justification to do that in the coming months, regardless of what happens in the Middle East.

Exodi

https://forums.moneysavingexpert.com/discussion/comment/82085897#Comment_82085897

I suspect they are deeply conflicted, with CPI currently at 2.6% above their target of 2.0% they really need a good justification not to increase interest rates. I do however think they have one in the current unemployment and growth figures and forecasts, coupled with uncertain global events as you mention. Unfortunately I suspect we are destined to stay in this period of stagflation for the foreseeable future.

ACG

https://forums.moneysavingexpert.com/discussion/comment/82085932#Comment_82085932

Sat on a couple of sessions with economists over the last month or so. I like the bloke at nationwide. He is extremely positive and has always maintained (since the war) that he thinks rates are unlikely to go up because of the jobs market.

Even when there was a lot of talk around rate rises, he held firm with his belief.

Unlike 2022/23 (mini budget/ukraine war) the jobs market is very different. People were able to go to employers and ask for a pay rise and get it - that wont happen now. Which means inflation will happen, but if the war stops reasonably soon (as it looked last month) then it would peak and drop without bedding in. There still seems to be a belief it will not stick.