Base Rate Tracker
See what the current Bank of England base rate of interest is below. If you're worried about how the base rate might influence your mortgage or ability to get on the ladder, talk to Tembo. Voted UK's Best Mortgage Broker two years running, we're specialists in helping remortgagers and buyers increase their mortgage affordability.
What is the base rate?
The base rate is the rate of interest the Bank of England charges other lenders to borrow money. It's the single most important interest rate in the UK - in fact, sometimes it's just referred to as 'the interest rate'.
The base rate is used by other banks and building societies to set their own interest rates on loans and savings accounts. This is why the base rate rising or falling usually influences interest rates.
What is the current Bank of England base rate?
The current Bank of England base rate is 5.25% - the highest level since 2008. The Bank of England's Monetary Policy Committee (MPC) who set the base rate have voted to keep the base rate at this level five times in a row. They will next meet on Thursday 9th May 2024 to determine whether the base rate should be increased or not. This will depend on whether inflation has continued to fall closer to the 2% target - at the moment inflation stands at 3.2%, a small drop from 3.4% in February 2024.
Will the base rate go up?
Whether the Bank of England decides to raise the base rate or not depends on what the UK economy is doing. At the moment, the base rate is not expected to go up. In fact it's expected to be cut within the first half of 2024 if inflation continues to fall. The base rate is one of the Bank's most useful levers in controlling inflation.
When the base rate goes up, this makes borrowing more expensive which can reduce how much people spend. If the population spend less, this means prices cannot rise as quickly, which in turn should reduce inflation. If inflation is still too high, then the Bank of England is likely to decide that the base rate should go up. If they feel inflation is getting under control, they may vote to keep the base rate the same or reduce it.
See today's best mortgage rates
Explore the best interest rates from thousands of mortgage products with our Interest Rate Tracker. To see what rates you could be offered, create a free Tembo plan today to get a personalised rate.
Interest Rate Tracker
