What are interest rates and will they fall further?
Published: 8/7/2025

The Bank of England has cut interest rates to 4%, the lowest level in over two years, to encourage spending and boost the UK economy. The Bank's base rate influences mortgage, credit card, and savings rates for consumers. Despite concerns about higher inflation, further rate cuts may be considered if the job market weakens. As interest rates fall, borrowers benefit from cheaper loans while savers face lower returns.