Money blog: Bank of England voting hints change is coming as rate held at 5.25%

Money blog: Bank of England voting hints change is coming as rate held at 5.25% - savers urged to act now

Andrew Bailey said there had been"encouraging signs" in recent weeks on inflation , but that the Bank needed to be sure that it could drop to its 2% target and stay there. "Many are still potentially missing out by not knowing what interest, if anything, they are being paid on their savings. "It's a sensible time to fix either savings or cash ISAs too, because if the Bank of England does cut as expected in the summer, you'll have locked in a decent rate."He says the decision is"totally in line with expectations" but the"interesting" point is how members voted.

"When cuts come, they will be gradual, unless of course there is a sudden rush of stronger-than-expected disinflationary forces and policymakers are then forced to play catch up."They have now become less hawkish - joining the majority in voting instead for a hold.This hints that rate cuts are becoming more likely in future meetings - and they're held every six weeks.12:00:12The Bank of England has held its interest rate at a 16-year high of 5.25%.

While banks and building societies set their own rates for mortgages, loans and savings, the base or Bank rate acts as a guide. In August, rates were hiked to their highest level since 2008 after 14 consecutive rises. It was done in an effort to bring down the rate of price rises as official measures showed double digit inflation from September 2022 to March 2023. High energy costs after the invasion of Ukraine made goods across the economy more expensive.

The increase will see duty rise by 44p on a bottle of wine - something announced a year ago in the budget. This means the number of tax bands will rise from one to 30, according to the chief executive of Majestic Wine.Treasury minister Gareth Davies said earlier this month:"To make the wine easement permanent… would go against the principle of this alcohol reform, to move to a strength-based system which brings in this public health element.

Source: News Formal (newsformal.com)

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