Explainer: Why is the Bank of England holding interest rates?

Here is all you need to know on that latest interest rate freeze by the central bank.

Transcript

00:00 Last week, the Bank of England, in its latest monetary update, has announced that the interest

00:07 rate will remain at 5.25% for May 2024, reflecting the bank's cautious approach amidst global

00:16 economic challenges. For homeowners with variable rate mortgages, this announcement offers a

00:22 sign of relief as their repayments will not increase for the time being. This stability

00:28 is particularly beneficial during uncertain economic times, allowing for better financial

00:35 planning and security. On the flip side, savers might feel themselves slightly disappointed

00:42 as the static interest rates mean that returns on their deposits will not see an improvement.

00:48 The bank's steady hand aims to anchor inflation expectations while nurturing economic growth.

00:55 By maintaining the current rate, they hope to provide a predictable environment for businesses

01:01 and consumers alike.

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