UK interest rates live: Bank of England set to cut interest rates in boost for mortgage holders
The UK’s base interest rate is expected to fall to its lowest point in more than 18 months, providing a welcome boost for mortgage holders.
Analysts believe the Bank of England will cut the interest rate from 4.75 per cent to 4.5 per cent in its monthly announcement on Thursday at midday.
The base rate helps dictate the cost of borrowing such as taking out mortgage with some products, known as tracker mortgages, following it.
The figure also impacts rates paid by individuals and businesses to take out loans.
But after the rate rose as high as 5.25 per cent in late 2023, there is an indication it will continue to fall, especially after inflation unexpectedly fell to 2.5 per cent in December.
Interest rates are typically raised when inflation is high to discourage people from spending money, thereby slowing the rate of price rises.
However, with economic growth stagnating across the UK, many believe the Bank will make another interest rate cut to encourage more spending and stimulate the economy.