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Interest rates held at 5.25%

Here’s what it could mean for mortgages...

Nov 06, 2023

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The Bank of England (BoE) has announced it will hold the Base Rate at 5.25% again this month. This follows the same decision in September, when the Base Rate was held for the first time since 2021, after 14 consecutive rises.

The Bank had been raising interest rates to tackle high levels of inflation. The Government sets the Bank a target of 2% inflation, but it’s currently much higher, at 6.7%. The Bank is working towards reducing inflation to 5% by the end of the year.

But the right balance needs to be struck between lowering inflation and keeping the wider economy healthy. Today’s announcement shows the Bank’s belief that its plan to tackle high inflation is working. And that continuing to raise rates may have a negative knock-on effect to households’ and businesses’ finances, further down the line.

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