BoE Decision: Base Rate Held at 3.75%

The Bank of England (BoE) Monetary Policy Committee (MPC) has announced its decision to retain the base rate at 3.75% this month.

This decision comes as inflation remains close to the government's 2% target, offering a period of stability for the UK economy.

What This Means for You

1. For Mortgage Holders

If you are on a fixed-rate mortgage, this news does not immediately affect your monthly payments. However, the stability in the base rate is good news for future deals. Lenders have already priced in this expectation, meaning fixed-rate deals are likely to remain competitive.

Tracker Mortgages: Your interest rate will stay the same. You won't see an increase in your monthly payments this month.
Variable Rates: Most standard variable rates (SVRs) will remain unchanged, though this is at the lender's discretion.

If you're looking to remortgage soon, check out our Mortgage Affordability Calculator to see how much you could borrow under current conditions.

2. For Savers

While a hold in rates means savings interest rates won't skyrocket, they remain relatively healthy compared to previous years. The top savings accounts are still offering returns that beat inflation, meaning your money is growing in real terms.

Advice: Shop around. Don't leave your money in a loyal high street bank account paying 1% when challengers are offering closer to 4%.

3. The Wider Economy

The decision to hold rather than cut suggests the BoE is still cautious about potential inflationary pressures (such as wage growth or energy prices). However, firmly holding at 3.75% rather than hiking is a clear signal that the worst of the cost-of-living crisis spirals may be behind us.

What's Next?

Markets are now pricing in a potential rate cut later in 2026 if inflation remains stable. This could lead to even cheaper mortgage rates by the summer.

Stay tuned for our next update, and calculate your potential savings with our tools: