The Bank of England has announced that it will maintain the current base rate of 5.75% and will not raise it any more in August.
Borrowers will be relieved to hear that their interest rates will not rise any further, after being hit by five increases in the last 12 months, the most recent being on the 5th of July, when it rose by 0.25%.
The bank of England’s Monetary Policy Committee voted today to maintain the current rate and their latest inflation and output projections will appear in the Inflation Report to be published on the 8th of August.
Stephen Leonard, Director of Mortgages at Alliance & Leicester, commented on the announcement: “It has been 12 months since the Bank of England started to put rates up after a year long run of maintaining them at 4.50%. With rates now more than one per cent higher than this time last year, this pause will come as a welcome break for homeowners and borrowers.”
Despite the rate remaining static this month, The Post Office has warned savers not to become complacent as a result of the five hikes this year. Head of savings, Richard Norman, said:
“Even though we have now seen five base rate rises in the last year, many savers are unaware they aren’t receiving the full benefit of these increases. A further base rate increase is expected this year, so savers must make sure they are with a provider that will pass on any increases.”
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