Consumers should consider their financial priorities as Bank of England holds interest rates

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:

“Nobody should envy the tightrope the Bank is walking, with this decision indicating caution amid a turbulent macro-economic environment, and we can expect this approach to continue with a few small rate cuts later this year.”

“Consumers must remember that it is not the base rate which dictates your savings rates, but your bank. Banks often get ahead of the Bank of England and will drop your rates expecting a base rate cut later in the year. This means that while the Bank of England has decided to keep their savings rates for the banks the same, you should expect yours to continue to lower.  

“If you’re finding yourself earning less interest on your cash, remember there are plenty of other providers who might give you a better deal that is a better fit for your financial priorities. Switching banks is an important way to put the power back in your own hands – make sure you consider using it.”