The Bank of England (BoE) has voted not to reduce interest rates today, despite inflation holding lower than expected in September, along with jobs data showing vacancies are still falling. That led to some economists to predict the Monetary Policy Committee (MPC) members would vote to cut the base rate to 3.75 per cent - but it remains at 4 per cent instead.
There have been three cuts this year and could still be a fourth, with the MPC meeting again in mid-December and money markets pricing in a bigger chance of a reduction then, once the upcoming Budget has been taken into account.
It’s worth noting that any subsequent bond market movements on the back of today's vote is unlikely to impact Rachel Reeves’ Budget in terms of government headroom, as the OBR takes rates from a set date period which has almost certainly already passed.
Follow The Independent’s live coverage of the latest stock markets and business news here:
Key points
- CONFIRMED: Bank of England holds interest rates at 4%
- Economics expert says rate hold the right outcome due to inflation and Budget uncertainty
- Conservatives lambast Rachel Reeves for interest rates staying higher for longer
- Best high interest savings accounts for your cash
- Three key reasons Bank of England may cut rates in December
- POLL: Do your savings beat the Bank of England?
Vote in our Money poll: Do your savings beat the Bank of England?
16:15 , Karl MatchettOne final message from us today: the chance to vote in our latest Money poll.
We want to know: Is your savings account beating the Bank of England interest rate?
Tell us now if you’re at, above or below 4%. If you want to leave a comment, head here. And if you’re below 4% and want some better rates, head here!
That’s it for us today - thanks as always for joining us and we’ll be back with more money, business and stock markets news tomorrow.
Interest rates, money and business news live - 6 November
07:49 , Karl MatchettMorning all, another busy day in store with the Bank of England’s latest MPC vote the headline story.
That’s later on but we’ll bring you all the analysts’ views ahead of the vote, as well as the latest business news and everything affecting your personal finances.
Interest rates today: Who, when and what
08:03 , Karl MatchettOK let’s lay out the basics so you know for later on.
Who: Interest rates are the domain of the Bank of England - specifically, the Monetary Policy Committee (MPC) members. There are nine of them and they vote on rate changes.
When: Today at noon. The next one is December 18, then there’s not another until February 2026.
What: The current base rate (what we call ‘the interest rate’) is 4%. The MPC members will vote on whether to keep it the same, raise it or cut it. Usually cuts/raises will be by 0.25% (called 25 basis points) but it’s far from unheard of to be double that or other figures when necessary.
When were interest rates last cut?
08:20 , Karl MatchettIf we do see a cut today, it will be the fourth one of the year and the sixth overall in this rate-cutting cycle, which started back in August 2024.
The MPC has largely held a “once per quarter” approach to cuts, with 25 basis points knocked off each time in February, May and August so far this year.
If a fourth cut arrives - either today or in December - it will be the first time since 2008 that five rate cuts in the same year have been announced.
Interest rates: Fourth cut incoming?
08:35 , Karl MatchettHere’s a view of what we’ve had so far in interest rates over the past few years, from the start of 2021 onwards.
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The cost of living crisis and rapid rise of inflation across 2022 and 2023 saw interest rates rise quickly to try and stem the tide of that inflation, and though there were 14 raises in total across that period, the BoE did come in for criticism for not doing enough, or not doing it fast enough.
Rates peaked at 5.25 per cent and stayed there for a full year, before the rate-cutting cycle started in August 2024.
Five cuts later we’re down to 4 per cent, but inflation has stayed higher for longer than expected so the cuts haven’t come as quick as some would have wanted - such as businesses, homeowners and the government, as lower rates tend to see productivity upticks.
Interest rates: Fourth cut incoming?
08:40 , Karl MatchettLooking at a wider lens, this shows interest rates all the way back to 2003.
It’s been a bit of a rollercoaster at times but after hitting 5.75 per cent pre global financial crisis, there was a long period of basically zero interest rates.
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Not many expect a return to those days, even once inflation is tamed and if/when geopolitical situations return to more or less stability.
How do inflation and interest rates impact each other?
09:00 , Karl MatchettInflation and interest rates are eternally linked in our economies.
They are complex topics and naturally there is way more to it, but in a nutshell:
The BoE uses interest rates to try and control inflation. Higher rates discourage businesses from investing in projects and hiring as many people, which in turn leads to less money in the economy, lower spending from people and therefore less opportunity to raise prices (which is basically what inflation is).
Therefore higher rates can help bring down inflation toward a government-set 2 per cent target. Currently we’re at 3.8 per cent inflation.
For an introductory explainer on how one impacts the other and how that affects you, with savings and mortgage repayments and the like, you can check this article out.
Nine banks cut savings rates on a 'hold' vote - will more follow?
09:20 , Karl MatchettWhile those people due to renew their mortgage soon will be hoping for rate cuts which in turn prompt lenders to reduce their own interest rates, for savers it’s a different matter.
Kate Steere, money expert at the personal finance site Finder, believes a rate cut today would mean bad news for savers across the rest of the year.
“If there is a base rate cut today, the Bank of England will essentially be giving banks a carte blanche to further slash savings rates.
“Even holding the base rate at the last meeting didn’t stop providers from reducing their rates, with 9 major banks and building societies dropping rates in October and November.
“With households already facing uncertainty ahead of the Autumn Budget, a rate cut now would be a blow to savers. They’ve done the right thing by putting money away, yet they risk being punished with shrinking returns at a time when every pound counts.”
Companies House facing criticism over fees increase
09:40 , Karl MatchettIf you’re planning to set up a new business soon, you might want to incorporate it sooner rather than later.
Companies House is increasing a massive raft of fees, including incorporation costs being lifted to £100 - that’s double the current cost.
The new fees are available here and start from February 2026.
BoE 'visibly divided' over inflation and interest rates
10:00 , Karl MatchettWhile inflation is unquestionably still an issue here, running at 3.8 per cent, the defining factors for the voters will include specific segments of inflation, how fast it is coming down (disinflation) and so on.
That’s where the split in votes come, when the MPC members see different areas as more important, recent trends as more notable (or not) and of course, what they think comes next.
“Inflation has almost certainly peaked. Food inflation – a critical concern at the Bank of England this summer – fell back in September and is now running half a percentage point below official forecasts,” explained ING UK economist James Smith.
“This all comes at a time when the Bank is visibly divided on how problematic inflation really is.”
Key factors for the Bank of England today and 2025 predictions
10:20 , Karl MatchettThe Bank of England’s (BoE) next meeting to determine interest rates is today, and all eyes will be on the Monetary Policy Committee (MPC) and whether its members opt to continue lowering rates.
The base rate – currently at 4.0 per cent following cuts three times this year – impacts consumers and taxpayers through everything from their mortgages to savings, so what do experts foresee both this week and beyond?
Will interest rates go down today? Key factors and 2025 predictions
Bank of England 'reactive rather than proactive' says expert
10:40 , Karl MatchettOne industry expert at AJ Bell suggests the BoE is likely to stay true to form and hang fire until December for a rate cut, in line with its “reactive rather than proactive” history.
“Could there be fireworks a day late at the Bank of England? The interest rate decision is hard to call ahead of today’s vote, with several observers expecting a rate cut even if the market is pricing in no change,” said investment director Russ Mould.
“Recent signs of easing inflation and a softer labour market would give the Bank some cover for a cut and the downbeat tone to Chancellor Rachel Reeves’ speech this week may encourage Governor Andrew Bailey and his colleagues to act ahead of the Budget later this month.
“It all boils down to whether the Bank feels it needs to get one step ahead of any Budget-related economic setback. The central bank has form in being reactive rather than proactive, so the likely outcome still seems to be that it waits until December before making the next move.”
Market movements ahead of interest rates
11:00 , Karl MatchettA quick look now at the latest this morning around the money markets - which are somewhat uncertain-looking before this key vote.
The FTSE 100 is down 0.3 per cent and the smaller companies 250 is basically flat.
Money markets are predicting about a one in three chance of a cut today to 3.75 per cent.
The pound is up about 0.28 per cent against the dollar, 1.308 the current rate.
Savers urged to 'lock in where you can' before rates tumble
11:20 , Karl MatchettHarriet Guevara, chief savings officer at Nottingham Building Society, is of the opinion a cut will be forthcoming and has laid out what it means for the public if that’s the case.
“With a rate cut now widely expected, this week could mark the start of a new chapter for interest rates, and for millions of savers and borrowers,” Ms Guevara said.
“For savers, base rate reductions tend to feed through into lower returns over time, so this is an important moment to lock in value where you can. Fixed-rate savings products, especially Cash ISAs, remain compelling while rates are still relatively strong. With further cuts likely on the horizon, it makes sense to act sooner rather than later.
“On the mortgage front, any reduction in the base rate could signal a gradual easing in the cost of borrowing. While we’re unlikely to see an immediate change in mortgage pricing, those coming to the end of fixed deals later this year may find better options opening up. Now is the time to review your finances and be ready to take advantage of changing conditions.”
Housing organisation urges BoE to vote for 'decisive' rate cut
11:32 , Karl MatchettThe CEO of Yorkshire Housing, Nick Atkin, has called for a clear sign from the Bank of England to spark the economy back into life.
“This isn’t just about housing, it’s about growth, jobs, and confidence. A decisive rate cut would give the economy room to breathe and provide the stability the housing sector desperately needs,” he said.
“Every month rates stay high means fewer homes and fewer people with a decent, affordable place to live.”
The government’s 1.5m homes target is in doubt without significant rate cuts, says a recent report from the association.
Inflation and interest rates: UK vs EU
11:42 , Karl MatchettInflation in Europe is lower than in the UK and so too are interest rates.
Ken Egan, a director at Kroll Bond Rating Agency, explains why the BoE faces a different decision and environment to the ECB.
“UK inflation remains stickier than in the euro area, with price expectations across households and firms running hotter — something closely monitored by policymakers. Weaker supply-side fundamentals, a tight labour market, and lingering Brexit-related frictions have limited the economy’s capacity to absorb cost shocks, allowing inflation pressures to pass through more quickly. As a result, the Bank of England faces a slower and more uneven disinflation path than its European peers.”
Interest rates: A fourth cut of the year to come?
11:52 , Karl MatchettThe two charts below show the interest rates path from the Bank of England over the past four years, and the past two decades or so. That long, low period post-financial crisis isn’t likely to be seen again any time soon - but the aftermath of that time was also the last time we had four or more rate cuts in the same year.
It has been far more slow and steady to come down this time around.
Interest rates: Vote result incoming
11:57 , Karl MatchettWe’ll have the final result from the Bank of England in just a few minutes.
We’re expecting a split vote either way, but the question is of whether it remains at 4 per cent or drops down to 3.75 per cent.
We may also see at least one vote for a 0.5 percentage points reduction, though that being an actual outcome is almost unthinkable just now.
Governor Andrew Bailey will be giving a press conference around 12.30pm - prior to that we’ll have all the reaction, expert comment and what it means for you as a consumer, business owner, jobseeker or homeowner.
Bank of England hold interest rates at 4%
12:01 , Karl MatchettThe vote is in - interest rates remain at 4 per cent.
As expected this was a very tight and split vote - the MPC members voted 5-4 to hold rates versus a cut to 3.75 per cent.
Importantly for consumers, they note inflation is judged to have already peaked but “more evidence” is needed to cut rates further.
Interest rates: MPC vote to keep rate at 4%
12:06 , Karl MatchettYou can be absolutely certain that the reaction - which is already flooding in - will be just as split as the vote itself.
Naturally there will be plenty who feel that holding is the right course of action given inflation is still almost double the 2 per cent target - but others want the economy to get moving again, which needs a spark.
Cutting interest rates might well be one such spark, but it’ll have to wait until next month at the earliest.
Holding rates 'the right decision' says economics expert
12:09 , Karl MatchettLet’s dig straight into the reaction then, starting with George Brown, who is the senior economist at Schroders.
He says not cutting is the best course due to inflation - plus that lingering uncertainty over the Budget.
“Holding rates today was the right decision, with inflation still nearly double the 2% target. The Bank will be in a stronger position after the dust settles from the Budget, armed with additional jobs and inflation data, to judge whether further easing is warranted in December,” he said.
“A cautious approach remains appropriate given the risk that high inflation becomes entrenched, due to sticky wage growth and subdued productivity.
“However, this may change if reports the Chancellor intends to double her fiscal headroom to £20 billion, through fiscal tightening in the region of £40 billion, are true. Alongside mooted tax cuts on household energy bills, if these measures materialise, they could create scope for the Bank to cut multiple times next year.”
No interest rate cuts 'disappointing' as retirees urged to act
12:15 , Karl MatchettOf course, the other side of the coin is those who are paying out based on the interest rate remaining higher - with financial experts urging people to take stock of their situation.
“The decision by the Bank of England (BoE) to hold the base rate at 4% is disappointing,” said Karen Barrett, founder of financial advice firm Unbiased.
“The BoE may be keen to see what chancellor Rachel Reeves will announce in the Budget as it’s expected to include major tax hikes and spending cuts, which could have a major impact on the UK economy.
“For aspiring homeowners or those looking to remortgage, fixed-rate mortgage rates have fallen slightly, but the decision to hold rates could stop lenders from further reducing them.
“As for retirees considering an annuity, now’s the time to act, as rates have soared nearly 10% in a year.
“Any future base rate cuts could impact the rates on your savings account, mortgage or annuity, so seeking expert advice from a qualified financial adviser or mortgage broker is worth considering before acting.”
Interest rates staying high as 'Rachel Reeves does not have a backbone' say Conservatives
12:20 , Karl MatchettPolitical reaction to the MPC vote is coming now too - though it’s a fairly familiar refrain at this stage given we’ve had about two rate holds to every rate cut for most of the year.
“Interest rates are staying higher for longer because Rachel Reeves does not have a plan or a backbone,” says Sir Mel Stride, shadow chancellor.
“With inflation running at almost double the target rate, families are facing rising prices in the shops. The UK has the highest inflation in the G7 thanks to Rachel Reeves’ Jobs Tax and reckless borrowing spree. And yet she is once again preparing to hike taxes, leaving us trapped in a doom-loop.
“Ordinary people are paying the price because Labour cannot reduce spending. Only the Conservatives have the team and the plan to deliver a stronger economy.”
Services inflation high on Bank of England's watch list before rate cuts
12:25 , Karl MatchettHere’s a bit more now from the MPC report and what they say they’re looking for, before more cuts to interest rates are made.
“CPI inflation was 3.8% in August and September, partly reflecting developments in food and administered prices. That is likely to be the peak. Beneath the headline numbers, underlying price and wage pressures have continued to ease. Inflation is likely to fall to close to 3% early next year before gradually returning towards to the 2% target over the subsequent year.
“But that is not yet assured. The MPC needs to see more evidence that inflation is on track to fall back all the way to the 2% target before it can cut Bank Rate again.
“Where monetary policy goes from here depends on how two big forces play out.”
The report goes on to detail those forces - inflation and economic activity - and where the next data sets might lead.
It is “still too early” to say inflation definitely won’t rise again, reads the report, while services inflation in particular as well as pay growth rates need to come down further.
'Household spending a particular concern' as saving rates increase
12:30 , Karl MatchettHere’s another notable excerpt from the MPC report:
“The outlook for household spending is a particular concern. The saving rate increased considerably during the pandemic and has so far not fallen back to historically more normal levels. That might indicate that there has been a more persistent shift towards higher saving, perhaps reflecting greater caution in light of the significant shocks that have hit household finances in recent years. It is also possible that households who are able to would want to continue to rebuild wealth after the recent period of high inflation.”
So, essentially households are hoarding more than usual rather than spending any extra income - but it’s still tough to say whether that’s a ‘new normal’ due to the likes of cost of living shocks and rampant inflation, or whether people are rebuilding safety buffers before embarking on spending sprees.
It could also be people building bigger resilience than previously due to the negative perceptions of the economy: fewer job vacancies, the threat of AI taking roles and so on. It all plays a part.
What are you doing in your household finances? Let us know in the comments.
The best high interest savings accounts for your cash
12:35 , Karl MatchettRegarding those savings: No cut for interest rates today which means we (hopefully) won’t see hoards of banks cut their rates on offer just yet. But December might be another matter.
So, if you’re looking for where to put your money (or if you haven’t yet moved it out of your current account - do so!) then we’ve compiled the best rates available for different types of accounts.
The main link below is for Cash ISAs, easy access accounts and fixed-term accounts, all offering above 4 per cent and in many cases around 4.4 - 4.5 per cent.
If you’re after a regular saver instead, then these are offering at least 7 per cent on your money.
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The best savings accounts for your cash before an interest rate cut in November
Leading economist points to three keys around BoE decision
12:45 , Karl MatchettSome insight now from Sanjay Raja, the chief UK economist at Deutsche Bank.
Here he points out three notable aspects of the vote and subsequent language around explanation which shows the BoE may have changed their stance somewhat.
“This was no ordinary [hold] decision. Today’s decision was tighter than expected with four members of the MPC pushing for a quarter-point rate cut, with Governor Bailey’s deciding vote tilting the decision towards a ‘hold’,” Mr Raja said.
“The Bank’s new and revamped guidance, however, told us three things.
“One, the overall MPC is putting more weight on downside risks to growth (as opposed to upside risks to inflation) – a major shift from the August decision.
“Two, while the MPC omitted the word ‘careful’ it maintained that rates would move gradually in a downward direction: ‘Bank Rate is likely to continue on a gradual downward path’.
“And three, Governor Bailey explicitly noted that he ‘would prefer to wait and see if the durability in disinflation is confirmed in upcoming economic developments this year.’
“The explicit nod towards data this year puts increased emphasis on the next two rounds of labour market and inflation data – this will be key for a rate cut late in the year.”
Mark your diaries: December 18th.
Budget choices will determine December interest rates cut
13:00 , Karl MatchettThomas Pugh, chief economist at tax and audit firm RSM UK, agrees a late-year rate cut is now on the agenda.
However, much still depends on any surprises in the Budget of course. And beyond that? Very, very wide open to interpretation.
“A cut in December looks likely if the budget is as disinflationary as the chancellor hinted at earlier this week,” he said.
“Ultimately, we think a December rate cut, and the number of additional rate cuts next year, depends on the tax choices that the chancellor makes at the end of the month.
“A deflationary budget focused on income and reformed property taxes would open the door for a rate cut in December, and potentially another two rate cuts next year.
“On the other hand, using a smorgasbord of big increases to smaller distortionary taxes to fill the hole, or another round of inflationary taxes, could push the next rate cut into next spring. For now, we have pencilled in the next rate cut for December, but continue to expect interest rates to reach 3.5% by the middle of next year.”
Let’s turn now to what it will mean for people in more immediate terms: savers, jobs, businesses and so on.
And, firstly, mortgages.
No change obviously means no change if you are on a variable rate, but Lorna Hopes, a mortgage specialist with financial advisers Smith & Pinching, pointed out there are moves being made in the market regardless.
“The Bank’s decision to hold the base rate unchanged will disappoint the million or so homeowners with a variable rate mortgage. For them, nothing will change - yet,” she said.
“But things suddenly look very different for fixed rate mortgages. Competition between lenders had been heating up before today, and the small print behind the Bank’s decision could now light the touchpaper on a fixed rate price war.
“Five of the big six lenders began a pre-emptive paring of their fixed rates last week. This was primarily about mortgage lenders trying to steal a march on each other, and battling for share in a market becalmed by pre-Budget uncertainty.
“If swap rates continue to fall in response, we could see lenders shaving their fixed rates further in coming weeks.
“This will be welcome news both for first-time buyers and the thousands of homeowners facing a painful jump in their monthly payments as the fixed rate on their existing mortgage comes to an end.”
Businesses worried about labour costs, say British Chambers of Commerce
13:30 , Karl MatchettOnto businesses now.
In all likelihood today wouldn’t have immediately impacted a lot of firms who seem to have been holding tight until Budget certainty emerges.
But lower rates on borrowing tends to increase investment and hiring - so the opposite may remain true in some cases for now.
“Although headline inflation eased slightly to 3.8% in September, firms are increasingly sounding the alarm about rising costs,” said David Bharier, of the British Chambers of Commerce (BCC).
“The Bank references BCC data throughout today’s monetary report. In our latest survey of 4,600 firms across the UK, 57% reported concern about inflation - while 72% raised labour costs as a source of pressure to raise prices. For many, this is driven by rising taxation, and the expectation of more to come.
“Ahead of the Budget, the BCC's message to the Chancellor is clear: no more tax rises on business. With interest rates only gradually coming down, Government must urgently focus on growth through boosting exports, tackling the skills crisis, and accelerating infrastructure project delivery. November 26th will be make-or-break for business investment and confidence.”
The BCC are not forecasting an interest rate cut in December.
What an interest rate hold means for savers
13:45 , Karl MatchettSo now let’s discuss savings accounts.
We noted earlier the best ones on the market for you and hopefully they may not see too much downward movement given the rate hold.
But that might not be the case.
It’s not always just about the base rate, but about what comes next - and increasingly it looks like they’ll go down sooner or later, which means savers must act pretty soon to get the rates they want - especially if that’s a fixed rate, says Mark Hicks, of Hargreaves Lansdown.
“The interesting thing for the savings market isn’t that the rate has remained untouched, but that the vote was so close, which could be an indication of the MPC’s appetite for rate cuts in the coming months.
“The best rates across the board have been holding on impressively over the past few weeks, particularly in the easy access savings and cash ISA markets, where significant competition among online banks and savings platforms has seen the best rates stay high – and in some cases the best on the market has actually crept up a little. Today’s minutes could put these rates under pressure.
“Noises from the Bank about the potential for future cuts could also mean some movement from fixed rate savings. It means anyone who is planning to fix their savings for a period might want to take advantage while so many great rates remain.”
Households urged to 'take stock of their finances and plan ahead' by money expert
14:00 , Karl MatchettIf mortgage rate changes and fixed-term deals aren’t concerning you right now, that doesn’t mean you shouldn’t act.
It’s important to take stock of your financial position as it is right now and ensure you’re prepared for unexpected circumstances ahead.
Tamsin Powell, a finance expert at Creditspring, points out that bills and expenses are high for many and rate holds won’t alter that.
“While a reduction or hold on interest rates may provide some short-term relief on borrowing costs and monthly payments, with so many households already stretched, it won’t address the ongoing pressures from rising bills, stagnant wage growth, and the arrival of the seasonal spending peak as winter and the festive season approaches,” she said.
“For households that are already stretched, this means that unexpected costs - like a broken down car, washing machine, or boiler - can become major problems that can spiral amid other financial priorities.
"Now more than ever, households need to take stock of their finances and plan ahead. Being realistic about spending and setting aside even small savings can help people stay in control as costs rise. If higher living expenses mean your take home pay doesn’t stretch as far, acting early, whether by adjusting budgets or seeking support, will make it easier to avoid falling into problem debt.
“As we look ahead to 2026 and the prospect of increased taxation measures, households that take proactive steps now will be in a stronger position to weather financial pressures and start the year with greater stability and confidence."
Bank of England criticised for not stopping gilt sales
14:20 , Karl MatchettOutside the question of interest rates themselves, the IPPR - a notable think tank - says the Bank of England should have gone further to support the faltering economy.
“With inflation flat since the last decision, sluggish growth, and a cooling labour market, the case for easing is clear,” said IPPR economist William Ellis.
“As with the US Federal Reserve, the Bank should also have completely stopped active gilt sales. These sales are not needed to control inflation and currently place unwarranted pressure on UK borrowing costs and the taxpayer.
“With low economic growth and a tax-raising Budget set to lean against demand, the Bank of England will have to do more of the heavy lifting to support the economy.”
Expectations of a return to 2% mortgage deals wide of the mark
14:40 , Karl MatchettDon’t expect a return to ultra-low interest rates on mortgage deals, is the message from one industry expert today.
“Black Friday deals might be all around us but the Bank of England isn’t joining in the frenzy by cutting the price of money. This puts a Christmas rate cut firmly on the cards. The Bank next meets on 18 December and moving rates down to 3.75% seems already wrapped up, especially given that four members of the committee want to see base rate at that level right now,” said Laith Khalaf, of AJ Bell.
“For the moment then, there is no immediate boost for consumers or businesses, or a beleaguered chancellor. The good news is the Bank thinks inflation has peaked, the bad news is it doesn’t forecast CPI being back to its 2% target until 2027. That suggests only very gradual reductions in interest rates, and only to around 3.5%.
“The longer term picture also remains one where interest rates bottom out at around 3.5% and probably stay there for some considerable time, which means we’re not going back to the days when fixed rate mortgage deals could be picked up for under 2%. So while some relief from cost of living pressures looks like it’s on the way, expectations for a dramatic windfall from the Bank of England need to be kept in check.”
Expert offers tax efficiency reminder on savings accounts
15:00 , Karl MatchettPersonal finance expert Alice Haine, from BestInvest, reminds those with cash in the bank to utilise their ISA allowances and ensure they are earning a decent rate of interest.
“Money languishing in an account paying a dismal rate should be moved swiftly to a more competitive option to ensure it works as hard as possible,” Ms Haine says.
“It is also vital to consider the post-tax returns, particularly as fiscal drag pulls more of people’s income into higher income tax bands. This is why tax efficiency matters. Too much money held in a regular bank or building society account puts savers at risk of breaching their Personal Savings Allowance, a threshold unchanged since its introduction in 2016.
“Basic rate taxpayers can earn £1,000 of interest tax-free, higher rate taxpayers just £500 and additional rate taxpayers get no allowance at all.”
Pound weakens after BoE hold call
15:20 , Karl MatchettThe pound weakened after the decision to keep rates on hold.Sterling reversed earlier gains against the euro to stand 0.1 per cent down at 1.134 euros, while the pound also pared back gains against the US dollar to stand 0.2 per cent lower at 1.308 dollars.
Meanwhile, a weakening jobs market means that the rate of unemployment could rise as high as 5.1 per cent by spring next year according to latest forecasts.
That’s higher than the 5 per cent peak predicted beforehand by the Bank of England.
Again, much will depend on the Budget with regards to business hiring activity and any possible tax raises.
Savers reminded to check for boosted rates to beat the market
15:40 , Karl MatchettSo where should your cash be now?
We gave you our list of best-on-market savings accounts to choose from, but it always depends on your own circumstances.
The key is not to do nothing, first and foremost.
Kate Steere, money expert at comparison site Finder said:
“More and more providers are now offering limited-time ‘boosted’ deals - and these often beat the base rate - so it’s worth signing up for one and setting a reminder to switch as soon as the offer ends. New customers at Chase can get a 2% boost on the saver account for 12 months, for an overall competitive AER of 4.5%. Meanwhile, Plum has removed withdrawal limits from its Cash ISA and is offering a boosted rate of 4.45%.”
‘The goalposts keep moving’: Readers debate why saving for a pension feels impossible
16:00 , Karl MatchettOur community has shared experiences of rising pension ages, reduced workplace benefits, and financial pressures that make saving and planning for the future increasingly difficult, especially for younger generations.
Read their thoughts here:
‘The goalposts keep moving’: Readers debate why saving for a pension feels impossible
