Interest rates held at 5.25%: here’s what it could mean for mortgages?
- Adam Arnott
- May 10, 2024
- 1 min read
The Bank of England (BoE) has announced it will hold the Base Rate at a 16-year high of 5.25%. The Base Rate has been held since August 2023, following 14 consecutive rises.
The Bank had been raising interest rates to tackle high levels of inflation, which was above 10% in the early months of 2023 – and way above the government target of 2%. In April 2024, inflation fell to 3.2%.
The Bank needs to strike the right balance between lowering inflation and keeping the wider economy healthy. The Bank’s Base Rate hold today was widely expected, and this decision shows the Bank’s belief that its plan to control inflation is working. The next set of inflation figures, set to be released on 22 May, will be another important factor that informs the Bank’s future decision making, ahead of the next decision in June.
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