The Bank of England has held interest rates at 5.25% again, keeping borrowing costs at their current level for now.
Rates have remained high as the Bank continues trying to bring inflation back down to its 2% target. While inflation has been falling, it’s still above target, and the Bank has been cautious about cutting rates too soon in case price pressures return.
For households, this means mortgages, loans, and credit card interest are likely to stay expensive for longer. Anyone coming off a fixed-rate mortgage could still face significantly higher monthly payments, and new borrowing remains costly compared to previous years.
Watch for future signals from the Bank of England on when rate cuts might begin, as well as inflation updates. These will determine when borrowing costs might finally start to ease.
Sources
Bank of England / Reuters