Summary

  • The Bank of England has held interest rates at 4.5%, in a widely-expected move

  • Governor Andrew Bailey says "there's a lot of uncertainty at the moment", but interest rates remain on a "gradually declining path"

  • In its summary, the Bank's rate-setting committee says "global trade policy uncertainty has intensified" after the US imposed new trade tariffs

  • The base rate was cut from 4.75% to 4.5% in February, having fallen from a peak of 5.25% last year

  • 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

Live Reporting

By Owen Amos and cost of living correspondent Kevin Peachey, with Michael Race reporting from the Bank of England

  1. What will today's decision mean for savers?

    Any cut in interest rates would be good for borrowers, but bad for savers.

    Many people are both, of course, but savings can sometimes be overlooked on a day like today.

    Banks and building societies would be likely to change the rates on variable savings accounts, if there is a base rate move. The current average for an easy access account is 3%.

    Overall, the returns on savings have been relatively high, analysts say, but it is those who shop around or who lock-in those savings for a set period of time who’ve been getting the best deals.

    Interest rate chart

    A higher base rate is generally good news for savers - although many people are both savers and borrowers

  2. 'My low mortgage rate is about to expire. I'm petrified'

    Louise Gibson

    Louise Gibson, 46, lives in a one-bedroom flat in Epsom, Surrey, and her five-year fixed rate mortgage at 1.52% ends in October 2025.

    She thinks a new fix will cost her hundreds of pounds more per month - so the Bank of England cutting the base rate could save her money when she renews.

    The volunteering manager for a charity says she is already cutting back going out with friends and to the theatre.

    "I’m petrified about what the next five years will look like and I have no idea about how I am going to find hundreds of pounds extra to pay for my mortgage," she says.

    Louise also reduced her mortgage term by several years when she last fixed - and says she may extend that to try to bring her monthly payments down.

  3. 'As our costs rise, we really hope the Bank reduces rates'

    Kris Grumbrell from Brewhouse Kitchen

    Kris Grumbrell from Brewhouse Kitchen

    Kris Grumbrell is the chief executive of Brewhouse Kitchen - a chain of brew-pubs across the UK with around 20 outlets. He is hoping for more cuts to interest rates this year.

    "We need something to help us mitigate some higher costs we’re seeing," he says.

    "I would encourage the Bank of England to think about what's happening within the economy and think about what's happening to the cost pressures that we're facing right now."

    Kris says the business is seeing rising costs - and there are more to come when employers' National Insurance contributions go up in April.

    "We use a supplier for kegs - they've doubled their prices to us for various reasons…so that has been a challenge for us, alongside the prospect of greater utility costs, greater significant increases in water charges for our business, and also in a market that's still quite tight in terms of labour," he says.

  4. An important few weeks for your money

    Kevin Peachey
    Cost of living correspondent

    This is a key period for economy-watchers and, in turn, for everyone’s finances.

    Today we have the interest rate decision.

    Next week, Chancellor Rachel Reeves moves into the spotlight with her Spring Statement - when she will outline how much government departments will have to spend.

    Then, at the start of April, a series of household bills - from water to broadband - will rise, adding extra pressure to stretched finances.

    But minimum wages will also increase, and early in April, there’s also a rise for the state pension and benefits.

  5. The basement awaits...

    Michael Race
    Reporting from the Bank of England

    Michael Race outside Bank
    • Our reporter sent this post a little earlier, before he was locked in:

    Good morning from the Bank of England in central London.

    I’m here to bring you the latest decision on interest rates, which are decided in this beautiful 300-year-old building behind me.

    I’ll be heading to the Bank’s basement soon, where along with other journalists, I’ll be locked in a room for an hour and handed a document revealing the Bank's latest interest rate decision and the reasons behind it.

    The expectation is that there’ll be no change, but no-one will know for sure (apart from those of us in the vault) until midday.

    There were some Foxes cookies (other brands are available) last time I attended - so I’m off for a cuppa.

  6. Your Voice, Your BBC News: Ask Kevin Peachey your questions

    When will interest rates fall?

    How does the Bank make its decision?

    And what are interest rates?

    As part of Your Voice, Your BBC News, our cost of living correspondent Kevin Peachey is on hand to answer your questions. To get in touch:

  7. Hold, cut, or raise? Welcome to our live coverage

    Good morning, and thanks for joining us for our coverage of the Bank of England’s latest decision on interest rates.

    The Bank’s base rate, which influences borrowing costs for households and businesses, is currently 4.5%.

    Economists expect it to stay there - although we won’t know for certain until we get the Bank's decision at midday.

    That decision is made by the nine-person Monetary Policy Committee. We’ll get the minutes of their meeting, which could give us some insight into the UK economic outlook.

    Our cost of living correspondent Kevin Peachey is also on hand to answer your questions - we'll have details of how to get in touch in the next post.

    Interest rate chart