Bank of England cuts base rate as mortgage and savings rates continue to drop

In response to the Bank of England’s latest base rate decision, John Dentry, Product Owner of the Current Account Switch Service at Pay.UK, said:

“The Bank of England is cautiously trying to encourage economic growth. High levels of inflation have certainly complicated the picture, but reviving the economy is clearly a priority this time round. The market has been blessed with quite a few rate cuts so far this year, so with this decision, it may be a little longer to wait until the next.

“While these moments are big for the market, for consumers, it is important to remember that the Banks are filled with plenty of smart analysts predicting what might happen to the base rate. This means they usually ‘price-in’ a cut before it happens, which is why you’ve likely seen mortgage and savings rates gradually fall throughout the year.

“A lot of people only look at their bank account options when rates are going upwards. Now that they’re coming down, it’s just as important to ensure your bank fits your financial priorities. There are lots of fantastic options out there, so make sure you’re constantly reassessing your provider and finding the perfect home for your cash.”