The Bank of England cuts base rate to 5%

As of last week, August 1st, 2024, The Bank of England (BoE) reduced the base interest rate to 5%, the lowest it’s been since 2020. The 0.25% cut will impact things such as mortgages and savings rates, but by just how much, time will only tell.

Why have interest rates been higher?

The BoE implemented high interest rates to slow the rate of inflation and price rises. Reducing the demand for goods and services helps to slow inflation rates. This strategy works as the inflation rate stayed at 2% for May and June this year. This cannot be said for all goods and services as prices of some things continue to rise. If high demand continues then expect to see high inflation rates once again.

Putting this period of high inflation behind us would be ideal for the economy, but the Bank of England must be careful with how they cut rates. All we can hope for is low and stable inflation going in the future.

Bank Rate reduced to 5% – August 2024 | Bank of England

News Categories

Most Recent Articles

How to Protect Cash Flow and Stay Ahead with Your VAT Returns

How to Protect Cash Flow and Stay Ahead with Your VAT Returns

Protect your cash flow by filing VAT returns on time. Avoid penalties, reduce stress, and keep your business finances on track. Paying and filing VAT on time isn’t just about following HMRC rules; it’s one of the best ways to protect your business’s cash flow and...

Final Quarter Tax Deadlines: Stay on Track for 2025

Final Quarter Tax Deadlines: Stay on Track for 2025

As we move into the year's final quarter, it’s time for the final update for the 2024/2025 tax year, covering October to December 2025. Whether you’re a limited company director, subcontractor, or self-employed, keeping on top of these dates will help you avoid...

HMRC Sends Out Letters On Marginal Relief

HMRC Sends Out Letters On Marginal Relief

HMRC has been writing to companies that it believes have incorrectly calculated corporation tax marginal relief on their company tax returns. If you receive one of these letters, do not ignore it. Even if you’re confident your tax return is correct, you must respond...

HMRC Sends Out Letters On Marginal Relief

Security Firms Must Check Employment Status of Operatives

HMRC is sending out letters to security firms, urging them to check whether their operatives should be classed as employed for tax purposes. Find out what action you need to take before the 7 August 2025 deadline. A client of ours recently brought to our attention a...

Tax Considerations When Taking a UK Business Overseas

Tax Considerations When Taking a UK Business Overseas

Thinking of relocating abroad while running your UK business? Discover the key tax implications and what you need to consider before making the move. With remote working now a norm for many businesses, it’s no surprise that more business owners are choosing to...

Archives