Bank of England holds Base Rate at 0.75%
The Bank of England’s Monetary Policy Committee has voted to hold its Base Rate at 0.75% in December, meaning there will be no further rate changes in 2018.
The Base Rate was increased from 0.50% in August 2018, and before that from 0.25% in November 2017 – the first increase in a decade.
This week’s announcement means there’ll be no change to the mortgage rates of those borrowers on tracker and variable rate deals, while fixed rate borrowers are not affected by Base Rate movements during the fixed period.
Now the expectation moves to 2019 and what will happen to interest rates. However, with the uncertainty of Brexit set to dominate the first quarter of the year, any forecasts are entirely dependent on the outcome of the UK’s withdrawal from the EU.
The Bank of England noted that ‘the monetary policy response to Brexit, whatever form it takes, will not be automatic and could be in either direction. The Monetary Policy Committee judges at this month’s meeting that the current stance of monetary policy is appropriate. The Committee will always act to achieve the 2% inflation target.”