On the 1st of August 2024, the Bank of England announced that the Bank of England Base Rate has been cut from 5.25% to 5%.
This is the first rate cut in four years after a period of rising rates to quell inflation. With the main rate of inflation now at 2%, the Bank has enough confidence to start cutting rates. What will be interesting to see is if inflation continues its downward trend and further rate cuts are upon us over the next 12 months.
Whilst this is only a 0.25% cut, it could still have an impact on your finances. Generally, savings rates and mortgage rates should drop a little in the short term. Those with fixed rates on either their savings or mortgage, will not be impacted until your current deal ends.
If you have any queries or concerns about what this change will mean for your finances, please do not hesitate to contact us.
PLEASE NOTE:
This blog is for general information only and does not constitute advice. If you require personalised advice, please contact us. The information is aimed at retail clients only.
