Owen Amos
Live editor

At 12:00 GMT, we got the decision we were expecting - the Bank of England held interest rates at 4.5%.

The nine-person Monetary Policy Committee, which sets the rate, voted 8-1 in favour of holding - with one member voting to cut.

That decisive vote is being seen by some as a sign that rates will remain at 4.5% for longer than expected. But - as with all economic forecasts - no-one can be certain.

The MPC said "global trade policy uncertainty has intensified" in recent weeks, citing US tariffs and other countries' responses.

Yet while Bank of England Governor Andrew Bailey acknowledged that uncertainty, he also said: "We still think that interest rates are on a gradually declining path."

As part of Your Voice, Your BBC News, our cost of living correspondent Kevin Peachey has answered your questions - see what he said about mortgages here, and student loans here.

Our live coverage is closing now - our wrap-up story is here. Thanks for reading.

Image source, PA Media

The Money Saving Expert founder, Martin Lewis, has been speaking to Adrian Chiles on his show on BBC 5 Live.

"We need growth in the economy, which would mean you want to put interest rates down, but inflation is trickling its little head again and going up," says Lewis.

"I don't think they [the Bank of England] had much choice to do anything other than that this time round... the Bank of England only has a very limited amount of tools."

Isn't the Bank powerless if there's a trade war?published at 14:17 Greenwich Mean Time 20 March

14:17 GMT 20 March

Kevin Peachey
Cost of living correspondent

Tom says: “Why is the Bank trying to combat inflation, when bigger picture prices will increase due to a trade war? This is uncontrollable so the only choice is to cut rates”

A fascinating question, Tom, and it would be interesting to know how much of the rate-setting committee’s time at their latest meeting was spent discussing trade.

It’s clear from the committee’s comments that US tariffs and the retaliation to them from other countries was critical to the economic picture they considered.

Perhaps more members would have voted for a cut if those inflationary pressures weren't there?

It can react with a domestic focus, and its remit is to keep inflation at, or close to, the 2% target, using interest rates.

Will today's decision affect my student loan interest?published at 13:47 Greenwich Mean Time 20 March

13:47 GMT 20 March

Kevin Peachey
Cost of living correspondent

Suzanne from Horsham, Jonathan from Bournemouth, and Laura from Bath have all messaged us with questions about interest rates on student loans.

While there’s no direct link between the Bank rate and student loan repayments, it is understandable that people are looking across all their finances to work out how to repay.

Other loans may be affected by the Bank rate, as it influences how much providers charge.

However, the interest on student loans is normally linked to the RPI measure of inflation.

Dare I say, you may need a degree to understand the complications of the system, but we do have a guide on this topic which we hope makes it clearer.

Kevin Peachey
Cost of living correspondent

Lots of economists have been expecting at least two cuts between now and the end of the year.

But are more rate cuts - in the plural - nailed on during the rest of the year?

We've just had some interesting views from Nina Skero, from the Centre for Economic and Business Research, who predicts there will only be one more this year.

The 8-1 vote today, she says, "solidified our view of one more rate cut in 2025". This will come around August, she says.

Since the interest rates decision at 12:00 GMT, we've seen a small dip in the value of the pound.

The pound was worth $1.295 a short time ago, from $1.30 at the start of the day.

That is, though, still higher than it was at the start of the year.

In January, the pound fell to its lowest level in a year at $1.226 against the dollar.

Why can't they change interest rates by smaller amounts?published at 12:59 Greenwich Mean Time 20 March

12:59 GMT 20 March

Kevin Peachey
Cost of living correspondent

Eric asks: “Why on earth in this digital age are interest rates increased or decreased by multiples of 0.25%? Surely they can be moved by smaller increments.”

Cast your mind back to March 2020 - a time when everything was turned on its head by the pandemic.

In the space of just over a week as Covid struck, the Bank made two emergency interest rate cuts – firstly from 0.5% to 0.25%, then again to 0.1%.

The second of those was obviously a smaller increment, as rates were already extremely low, so it is possible Eric. In fact, 0.1% was the lowest rates had ever been in the Bank’s 325-year history.

However, it is certainly true that moves of 0.25, or perhaps 0.5, percentage points are the Bank’s preferred options, in order to have the required impact.

'I saved all my life. Now I'm being taxed because I prepared'published at 12:57 Greenwich Mean Time 20 March

12:57 GMT 20 March

Kevin Peachey
Cost of living correspondent

Peter, from London, says: “I want to see personal saving interest rates lifted to encourage people to save. As a pensioner I saved all my life. Now I am being taxed because I prepared for my old age.”

All savers want a better return for their money. The reality is that many savers are borrowers too, so Bank rate changes can affect their finances in different ways.

It is up to individual providers where they set their savings rates.

But, generally, the longer you are prepared to lock your savings away in fixed-term deals, the better the rate you’ll get.

Clearly, that might not suit everyone’s circumstances.

Image source, PA

Following reaction from Chancellor Rachel Reeves, we've just heard from the Shadow Chancellor, Mel Stride.

He says interest rates staying at 4.5% "will mean higher mortgages for millions of people" - and he blames Reeves' Budget last year for inflation staying above the Bank of England’s target, "making it harder to bring interest rates down".

He says in Reeves' Spring Statement next week she "must take responsible steps on spending, borrowing and debt" so the Bank of England can cut interest rates in the future.

Can't the Bank give a little bit more?published at 12:35 Greenwich Mean Time 20 March

12:35 GMT 20 March

Kevin Peachey
Cost of living correspondent

Owen, from Kingswood, says: “I don’t understand why the Bank would not reduce rates just a little in order to send out a positive message for people to invest in growth. We need this now more than ever.”

Although there was a hold in interest rates today, Owen, we have seen three cuts since August.

So the direction of travel has been down, and the expectations are for further cuts – rather than rises – during the rest of the year.

That said, it is true that lower interest rates can spark more investment (because it becomes cheaper for businesses to borrow money) and Chancellor Rachel Reeves would, no doubt, have dearly loved another rate cut just before her Spring Statement.

The narrative from the chancellor, and the PM, will still be growth, growth, growth. But that’s been notoriously difficult to achieve in the UK in recent times.

The Bank, meanwhile, also needs to keep a close eye on inflation when making its rate-setting decisions.

Kevin Peachey
Cost of living correspondent

It may sound a little strange to describe a vote not to change something as decisive - but this is one of those moments.

Economists had probably expected a 7-2 vote among the Bank's Monetary Policy Committee, but this turned out to be a close-to-unanimous 8-1 decision to keep rates on hold at 4.5%.

Thoughts will quickly turn to what may happen at the next rate-setting meeting, where a rate cut is considered among analysts to be more likely.

But you'll have to wait until 8 May for that.

Image source, Reuters

We've just had some reaction from Chancellor Rachel Reeves.

She says there has been three rate cuts since the summer (interest rates were 5.25% last year), "but there's still work to do to ease the cost of living".

She says her mission is to "put more money in the pockets of working people" and says decisions were made to protect "workers' payslips with no rise in National Insurance, income tax or VAT", while the minimum wage was increased and fuel duty frozen.

She adds that in "a changing world" she is determined to "bring in new era of stability, security and renewal".

When will mortgages go down?published at 12:15 Greenwich Mean Time 20 March

12:15 GMT 20 March

Kevin Peachey
Cost of living correspondent

As part of Your Voice, Your BBC News, we're answering questions on today's decision, and the wider economy. Chris, from Stratford-upon-Avon, asks: “Specifically on mortgages. Will they be going down? If not, why?”

Of course, the honest answer is I don’t know when they will go down - and nor does anyone else.

That said, mortgage rates on two-year fixed deals have been edging down in recent weeks on the expectation of a falling Bank rate. Analysts predict two, or possibly three, more cuts this year.

Remember, you won’t pay a new rate on a fixed mortgage until the current deal expires and you renew or get a new one.

Tracker mortgages move in line with the Bank rate, so see a more immediate impact on your finances when the base rate changes.

Renters can also be affected if their landlord's mortgage gets more or less expensive, and they pass that through to tenants by changing the rent.

Michael Race
Reporting from the Bank of England

I’ve spent the last hour locked in the Bank’s basement reading through the reasons behind the Bank’s decision to hold rates.

Economic uncertainty and the threat of tariffs to global trade seem to be the main reasons why policymakers have held off on back-to-back cuts.

But it cites some interesting feedback from its "agents" around the country – that businesses are bracing themselves for a tax hike when employers' National Insurance increases next month.

It says most have paused or frozen hiring already, and are in "wait and see" mode to see how things pan out.

The chancellor will have to live without a late boost from the Bankpublished at 12:08 Greenwich Mean Time 20 March

12:08 GMT 20 March

Dharshini David
Chief economics correspondent

Growth will take centre stage at Rachel Reeves Spring Statement next week – but she’ll have to do without a late boost from one of the leading players, the Bank of England.

The Bank’s decision to leave rates unchanged reflects the bind it find itself in, torn between lingering persistent price pressures and barely visible growth, and operating against a hugely uncertain global backdrop – a factor mentioned front and centre in its report.

It thinks inflation could hit 3.75% by the autumn, before easing. However, it acknowledges there are risks, not least as companies grapple with higher labour costs due to higher National Insurance contributions and an increase in the National Living Wage .

Those government policies have also been weighing on business and consumer confidence – and surveys suggest hiring may be in the firing line. The Bank’s also mindful that while the rate rises enacted since 2021 have helped reduce inflation, they continue to hurt pockets.

Over a quarter of mortgage holders, it thinks, are yet to be exposed to higher borrowing costs.

Meanwhile, like the rest of us, the Bank waits to see how the twists in the Trump tariff tale develop. Already its counterpart in the US has cut its forecast for growth there.

As it stands, the Bank is expected to resume rate cuts next month. In the meantime, it is borrowers that are paying the price of the uncertainty lingering at home and abroad.

Michael Race
Reporting from the Bank of England

As it held interest rates at 4.5%, the Bank of England has warned economic and global trade uncertainty has “intensified”.

US trade tariffs and retaliation to the import taxes from the likes of the EU, has created uncertainty for countries, the Bank says.

Its decision to hold was widely expected, but governor Andrew Bailey said ratesetters still believed rates were “on a gradually declining path”.

“There’s a lot of economic uncertainty at the moment,” he added. “We’ll be looking very closely at how the global and domestic economies are evolving.”

Bailey says it's the Bank’s “job to make sure that inflation stays low and stable”.

Inflation, which measures the rate consumer prices rise at, currently remains above the Bank’s 2% target at 3%.

The Bank's nine-person Monetary Policy Committee (MPC), which sets rates, voted by a majority of eight in favour of holding interest rates.

One committee member, Swati Dhingra, voted to cut rates to 4.25%.

The Bank of England has held interest rates at 4.5%, as expected.

We'll bring you more on this shortly, including the breakdown of how the Bank's committee voted. Stay with us.

Jennifer Meierhans
Business reporter

Interest rates are generally put up to reduce the UK inflation rate - which is the annual increase in the prices. And they are generally cut to boost spending and, therefore, the wider economy.

The Bank of England has been set a target by the government to keep inflation at 2% - but it's currently 3%.

The idea is to balance the need to slow price rises (by making borrowing more expensive) against the risk of damaging the economy.

The higher-than-expected jump in inflation from 2.5% in December, means prices rose at the fastest pace for 10 months and pushes inflation further above the Bank of England’s target of 2%.

The Bank of England has previously said it expects inflation to spike at 3.7% between July and September 2025 due to higher energy prices, water bills and bus fares.

It then thinks inflation will drop back towards the 2% target towards the end of 2027, having previously predicted this would happen earlier in the year.

Interest rates are the extra money that gets charged on top of a loan, or paid on top of savings.

For example, if you borrow £100 from a bank and it charges a 5% interest rate, you will pay back £105.

If you have £100 in savings and the interest rate is 5% your savings will rise to £105.

The Bank of England is the UK’s central bank and is independent from the government. It sets a base rate which influences how much lenders charge borrowers for mortgages, loans or credit cards.

So if the Bank of England puts its interest rate up, that means you'll pay more interest on borrowed money - unless you’ve borrowed it at a fixed rate.

Interest rates are often a big deal for people with mortgages who do not have a loan with a fixed rate, or have a fixed-rate deal ending soon.

But it's not all bad news, as higher interest rates should mean an increase in the interest people earn on savings - though banks can be slow to pass on these rises.