Sarah Pennells, Consumer Finance Specialist at Royal London, comments on the prospect of a rise in the Bank of England base rate at Thursday’s Monetary Policy Meeting.
“We’ve all grown accustomed to very low interest rates with already historically low rates cut to just 0.1% at the start of the pandemic. While this has been good for borrowers, savers have been frustrated by the low interest rates on their savings.
“However, pressure in the form of inflation is building and many expect the Bank of England to try to rein it in by increasing the base rate at Thursday’s Monetary Policy Committee meeting. If the rate does go up, it will be the first rise in over three years, when the base rate moved from 0.5% to 0.75% in August 2018.
“In the event of an interest rate rise, people with a tracker mortgage will see a corresponding rise in their mortgages rates and variable rate mortgages could follow soon after. However, there’s no guarantee that the interest rate on variable rate savings accounts will rise straight away, so savers should keep a close eye on their own rate. In the event of a rate rise, other banks or building societies may offer a better return.”
For further information please contact:
Neil Cameron, PR Manager
- Email: neil.cameron@royallondon.com
- Mob: 07919 171969
About Royal London
Royal London is the largest mutual life insurance, pensions and investment company in the UK, with assets under management of £153 billion, 8.8 million policies in force and 4,075 employees. Figures quoted are as at 30 June 2021.