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.
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.
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 will next meet on the 21st September 2023 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 7.9%
Whether the Bank of England decides to raise the base rate or not depends on what the UK economy is doing. 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 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.
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