Summary
The Bank of England is expected to keep interest rates steady at 3.75% as its Monetary Policy Committee meets. This decision is due to ongoing high inflation and weak economic growth, with a cautious approach to future rate changes.
Key Facts
- The Bank of England's current interest rate is 3.75%.
- The Monetary Policy Committee (MPC) cut the rate from 4% to 3.75% in December.
- Inflation is above the target, currently at 3.4%.
- Around one-third of UK households have a mortgage, with about a million of those on variable-rate deals.
- Fixed mortgage rates fell earlier this year as lenders competed, but other pressures might prevent further declines.
- Two-thirds of savings providers have cut their rates since the start of the year.
- The MPC meets eight times a year and will release an economic report alongside its rate decision.
