Interest rates fall even further – what does that mean for you?

Interest rates have fallen for a fifth consecutive time, after the Bank of England decided the economy is healthy enough to cut them to their lowest level in two-and-a-half years.

The Bank’s governor Andrew Bailey announced this afternoon its Monetary Policy Committee has decided on a reduction of a further 0.25 percent, bringing the figure to 4 percent.

It marks another fall for the base rate after it peaked at 5.25 percent in autumn 2023 and stayed there until the following summer.

In the dramatic few years that followed the Covid lockdowns, the Bank increased interest rates 14 times in an effort to control inflation, causing alarm for homeowners.

Today’s decision means repayments on many mortgages will fall – but it could also result in less welcome news for savers.

Chancellor Rach