Bank of England Lowers Base Rate to 4.75%

In a notable move to address economic conditions, the Bank of England has announced a 0.25% reduction in its base rate, lowering it from 5% to 4.75% following the latest Monetary Policy Committee (MPC) meeting. This marks the first time the rate has fallen below 5% since June 2023.

The base rate cut will benefit borrowers with variable or tracker mortgages, offering them immediate financial relief. For every £100,000 borrowed, monthly payments will decrease by approximately £25, providing a welcome reduction in household expenses during challenging economic times.

While this adjustment doesn’t directly affect fixed-rate mortgages, industry experts are optimistic about potential indirect effects. If swap rates, which influence fixed mortgage pricing, begin to decline in response to the Bank’s decision, further reductions in mortgage rates could be on the horizon.

This rate cut reflects the Bank’s ongoing efforts to balance inflation control with economic support, signaling a potential shift in monetary policy direction after months of steady rates.