What today’s interest rate move means for you
Friday 3 November, 2017
As was widely expected, the Bank of England’s Monetary Policy Committee (MPC) today raised interest rates for the first time in 10 years.
The change is a small one, moving from the all-time low base rate of 0.25% that the MPC moved to immediately following last year’s EU referendum, back up to 0.5%. Nevertheless, this could be a signal of shift in policy from the Bank which may well initiate further rate hikes in 2018 to combat a rise in inflation.
While today’s move is unlikely to have a significant impact on your finances, those on variable rate mortgages could see a small increase in their monthly payments. Payments will not change for those currently on fixed rate mortgages.
Savers may benefit from a small increase in interest paid on their cash accounts, though rates offered through bank accounts remain feeble. Annuity rates may also see a small increase.
If you have any questions regarding your finances, please contact us/me and I/we will be happy to help address any concerns you may have.