Interest rates LIVE: Bank of England decision 'virtually certain' as outcome due today

The Bank’s Monetary Policy Committee (MPC) are meeting today to decide whether to cut the base rate for the second time this year

The Bank of England will announce whether it will cut its base interest rate at 12pm today.

The base rate currently sits at 5% and the majority of economists expect it will be cut to 4.75%. This would mark the second cut by the Bank of England this year. The base rate was cut by 0.25 percentage points, from 5.25% to 5%, in August after inflation dropped to the Bank of England target of 2%.

It was held at its current rate at the September meeting. Economists are predicting the rate will be cut once again today after inflation fell further to 1.7% in September. Andrew Goodwin, chief UK economist for Oxford Economics, said a cut "looks virtually certain" but warned some members could still opt for rates to be kept the same due to concerns over services sector inflation and wage growth.

The base rate dictates how much interest you pay when you borrow money, so mortgages and credit card rates usually get more expensive when they go up. This means a cut in the base rate will be good news for homeowners who are on a variable deal.

After the base rate cut in August, mortgage deals have been slowly on the way down, after reaching a 15-year high of 6.66% for the average two-year fixed rate deal in July 2023. However, when the base rate goes down, savings rates also usually go down.

Have your mortgage payments been cut? Let us know how much you are saving by emailing: mirror.money.saving@mirror.co.uk

08:49Ruby Flanagan

What is the Bank of England base rate?

The Bank of England's base rate, sometimes known as the bank rate or base interest rate, has a major impact on money and finances in the UK.

This is because it influences what banks and lenders charge you to borrow money. The base rate mainly affects mortgages, credit cards, and loans. When the base rate goes up, these become more expensive.

However, it also impacts savings, as the rate paid on your cash pots should move in line with the rate. This means you should earn more money through interest on your savings when the base rate is higher and you earn less when it goes down.

08:47KEY EVENT

Bank of England announcement due at 12pm today

Welcome to The Mirror’s Bank of England live blog. Here, we will provide you with the latest updates and analysis ahead of the interest rate announcement at 12pm.

The base rate has been at 5% since August this year. This was the first time the rate was cut in four years. Yesterday, economists polled by Reuters found that 97% believed there would be a cut of 0.25 percentage points today, bringing the rate down to 4.75%.