Thu, 31 Jul 2025

Thu, 31 Jul 2025 When will interest rates go down again?

The interest rate set by the Bank of England affects mortgage, loan and savings rates for millions.

* The Bank of England is expected to cut interest rates when it meets on August 7.
* Rates have been at 4.25% since February, and the governor has hinted that further cuts could follow.
* Inflation remains above the target rate of 2%, but most analysts expect a cut despite this.
* Some economists predict UK rates could fall to 3.5%.
* A cut in interest rates would affect millions of people with mortgages, credit cards, and savings.
* The average two-year fixed mortgage rate is currently 5.03% and the average five-year deal is 5.01%.
* Around 800,000 fixed-rate mortgages are expected to expire by the end of 2027, leading to higher borrowing costs for those affected.
* A cut in interest rates could lead to reduced returns on easy access savings accounts.
* The Bank of England's base rate affects what banks and building societies charge their customers for loans.
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