Prompt: Create a story covering: What is the Bank of England base rate and how does it affect me? Include this as a script for the prompt: Nine members of the Bank of England's Monetary Policy Committee meet eight times each year to set the base rate. Here we explain why the Base rate changes and how it affects your finances.
MILLIONS of mortgage bills are set to fall after the Bank of England confirmed a cut to interest rates.Bank Governor Andrew Bailey said: "Inflation is just below our 2% target and we have been able to cut interest rates again today."We need to make sure inflation stays close to target, so we can’t cut interest rates too quickly or by too much. But if the economy evolves as we expect it's likely that interest rates will continue to fall gradually from here.
Interest rates have risen from historic lows of 0.1% in December 2021, and peaked at 5.25% in July 2023, as part of efforts to reduceFish and chip shop launches Xmas dinner with a twist - would you eat it?The cut came after months of inflation falling from a record high of of 11.1% in October 2022. The average standard variable tariff rate is 7.95%, although these are among the priciest rates on the market.
"Over the course of the past 12 months, mortgage rates have been coming down and the average two-year fixed rate has dropped by almost 1%. However, it's important to remember that multiple factors influence credit card rates, and not all lenders may fully pass on the benefits of the rate cut.This is because banks often compete to offer market-leading rates, although they can be slower to pass these benefits on to customers.Banks and building societies have been preparing for future rate cuts and have already started cutting rates in recent months.
Holly Tomlinson, financial planner at Quilter, said: "Currently, there are still some accounts paying as much as 7%.
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