Bank of England holds interest rates at 5% again – what it means for your money

The decision comes after the Bank cut rates for the first time since March 2020 in August

The Bank’s Monetary Policy Committee made the first reduction since March 2020 last month, reducing the rate by 0.25 percentage points.Yesterday, figures released by the Office for National Statistics showed inflation stayed at 2.2 per cent.

Core inflation, which excludes volatile measures such as energy, food, alcohol and tobacco, also rose by 3.6 per cent in the 12 months to August 2024, up from 3.3 per cent in July. Both two- and five-year fixed deals now available for below 4 per cent but many will be moving off rates that were as low as one per cent.Nick Mendes of brokers John Charcol said: “The gap between two and five year fixed mortgage rates is expected to narrow.

If you’re approaching the last six months of your fixed-rate mortgage, experts recommend that now is the time to start exploring new deals.

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