The Bank of England has decided to leave interest rates unchanged at 0.25%.
The Monetary Policy Committee (MPC), which decides where to set interest rates, opted for a cut in August, taking rates to their lowest ever levels. It is therefore no surprise that rates have been left unchanged in September.
The cut in August came in response to fears that the economy would slow considerably following the Brexit vote. Since then, new evidence has emerged that any slowdown will not be as marked as previously feared, leading to the MPC’s decision to keep interest rates at 0.25%.
However, the minutes of the latest MPC meeting show that another cut, to 0.1%, could come as soon as November.
Low interest rates: winners and losers
Borrowers will continue to be pleased by the low interest rate environment.
Conversely, savers continue to struggle to find ‘real’ returns, as both banks and building societies continue to cut interest rates. This task will become almost an impossibility in months to come if inflation starts to rise again and interest rates remain low.
Are you a winner or loser from low interest rates? Our latest article explains more, click here to read it now.