Bank Base Rate Decision – August 2023

The Bank Base Rate has risen from 5% to 5.25%

Yet another riveting day in the realm of the UK’s financial landscape!

Today, we gather around the digital hearth to delve deep into the heart of one of the most pivotal moments in the economic calendar: the Bank Base Rate Decision. As the echoes of today’s announcement reverberate across the City of London and beyond, it’s time to buckle up and navigate the twists and turns that lie ahead.

Another month and yet another 0.25% rise from the Bank of England who seem hell-bent on inflicting further misery on mortgage holders and those with aspirations to buy.

This further rise seems an unnecessary step too far, and we can only hope that the Bank now sees sense and pauses for breath as this, and previous rises finally work themselves through the economy before they cause any lasting damage.

The good news is that SWAP rates have eased recently on the expectation that we are now very near or at the peak of the current rate cycle, and although tracker mortgages will increase on the back of today’s decision, we may well see fixed rates continue to ease slightly, especially as lenders look to get a better start to next year.

The next inflation report and subsequent words and actions from the Bank of England are crucial to us all. We know taming inflation is imperative, but to every action, there is a reaction further down the line.

While the road ahead may be challenging, I remain cautiously optimistic. The resilience of the UK economy has been tested time and again, and each challenge has birthed an opportunity for growth and innovation. It’s crucial to remember that despite the turbulence, we are a nation built on adaptability and ingenuity.