Bank of England holds interest rates at 4% - what it means for mortgages and savings

The Bank of England has kept interest rates at 4 per cent in its latest meeting.

The base rate, which has a large bearing on mortgage costs and savings interest for consumers, was widely expected to be kept at this level.

Interest rates were last cut from 4.25 per cent back in August.

At the meeting on Thursday, its nine-strong committee voted to keep rates at their current level by a majority of 7-2, with two members voting to cut rates.

The base rate reached its peak of 5.25 per cent in August 2023 in response to high inflation and has been reduced five times since then, with three cuts coming this year.

The Bank’s Monetary Policy Committee (MPC) of nine leading economists tends to cut rates when it is confident inflation is returning to its target level of 2 per cent.

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