The Bank of England’s Monetary Policy Committee (MPC) has voted unanimously to maintain Bank Rate at 0.75%.

The Committee noted that growth was expected to be flat in the second quarter of the year, lower than had been previously expected, reducing the likelihood of a rate rise in the near term.

Rates have been on hold since August 2018, meaning that borrowers paying a variable rate are unlikely to have seen a change in their repayments in recent months. But if the Bank of England did hike rates in future months, their pay rates could follow suit.

Those on a fixed rate will pay the same each month for the duration of their fixed rate period, regardless of what happens to wider interest rates.

What happens next?

The Bank reiterated that the UK’s economic outlook continues to depend ‘significantly on the nature and timing of EU withdrawal, in particular: the new trading arrangements between the European Union and the United Kingdom; whether the transition to them is abrupt or smooth; and how households, businesses and financial markets respond’.

It added that the future direction of interest rates will not be automatic and could be in either direction.