Wed, 07 May 2025

Wed, 07 May 2025 Interest rates expected to be cut by Bank of England

Rate-setters meet to decide whether to change the base rate from 4.5% with a decision at 12:02 BST.

* A cut in interest rates from 4.5% to 4.25% by the Bank of England is highly likely.
* The move would make borrowing money less expensive, but lower returns for savers.
* If confirmed, it would be the fourth rate reduction since last year's peak and the second this year.
* The Bank's Monetary Policy Committee (MPC) will consider inflation rates, currently at 2.6%, and global economic uncertainty.
* Eight in 10 homeowners with a mortgage have a fixed-rate deal, but lenders may not cut mortgage rates further due to market expectations.
* A fall in interest rates would also impact savings returns, particularly on instant-access accounts.
* Homeowners with tracker mortgages could see lower monthly repayments, but those on standard variable rate mortgages will need to wait for lender decisions.
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