Summary

  • The Bank of England leaves interest rates unchanged, in a surprise move

  • It had been expected to raise the base rate from 5.25% to 5.5%

  • "Inflation has fallen a lot in recent months, and we think it will continue to do so," says Bank of England Governor Andrew Bailey

  • Inflation was 6.7% in August, a surprise drop from July - despite rising petrol and diesel prices

  • The previous 14 times the Bank made a decision, it opted to increase the rate, starting at the end of 2021

  • Increasing the base rate generally leads to more expensive mortgages - which is supposed to dampen consumer spending and inflation

  • "We are starting to see the tide turn against high inflation," says Chancellor Jeremy Hunt

Live Reporting

Edited by Heather Sharp

  1. Time for a raise?

    Heather Sharp
    Live reporter

    Welcome to our live coverage as we wait for the Bank of England’s latest decision on interest rates at midday.

    The UK’s official interest rate, which is also known as the “base rate”, currently stands at 5.25%. That’s the highest for 15 years - and it could go even higher today.

    Economists had been forecasting a rise to 5.5%. But yesterday we saw a surprise fall in inflation - albeit a small one - to 6.7% in the year to August, down from 6.8% in July.

    So now, forecasters are split over whether the Bank will raise rates - or leave them where they are.

    Whatever happens, our team of experts will be here to report the decision and explain what it means for mortgages, credit cards, savings and everything else it affects.