The Bank of England has announced today that the base rate will remain at 5.25%, marking the seventh consecutive time the rate has been held at this 16-year high. This decision, coming just ahead of the general election, was widely anticipated but may not be welcomed by those with mortgages and others who continue to face significant financial strain.

This announcement follows new figures released yesterday, that revealed the UK’s inflation rate dropped to 2% last month, meeting the Bank of England’s target for the first time in three years. This development comes at a crucial time as the country has been grappling with some of the highest inflation rates seen in recent years.

For many consumers and businesses, particularly those struggling with high costs in the UK, this reduction in inflation offers a glimmer of hope. However, it is important to note that not everyone will benefit equally. While the overall inflation rate has decreased, service rate inflation remains high, continuing to put pressure on certain sectors.

Looking ahead, the next Bank of England meeting is scheduled for 1st August. Until then, consumers and businesses will be watching closely to see if any changes are made to the base rate, hoping for further relief in the challenging economic landscape.

We have attached the following link for further information and will update when the next meeting happens – UK interest rates: Bank of England hints August cut now possible – BBC News.