The Bank of England base rate
The Monetary Policy Committee at the Bank of England meets around every six weeks to review the economy and decide what should happen with interest rates. The interest rate they set is called the base rate. This guides banks, building societies, credit unions and lending firms with the interest rates they set for their lending and savings products.
Bank of England base rate
Currently 5.00%
The last interest rate decrease to the base rate
0.25%
Next base rate meeting
19 September 2024
Base rate and bank rate explained
The Bank of England sets the base rate for interest it charges to banks and large lenders to borrow from its money reserves. This interest rate becomes a bank rate that banks use as a guide to price their lending and savings interest rates. Learn more in this video.
Find out how this change impacts your business
How is my lending affected?
When the base rate is changed, the interest rates applied to customer lending may change too. This is because the base rate affects how much it costs to borrow and lend money between financial organisations like banks.
It is important to know:
- we will advise you whenever there is a change to your interest rates and be clear on when and what changes will be applied
- if your lending is linked to base rate, the rate will automatically be applied the following day from the day that base rate changes, and by the same amount of the change.
If you are concerned about how changes to interest rates may impact you and your business, please visit we are here to support your business. Here, you can find information about the cost of living crisis, financial support and tips on business planning. We are here to help you.
How are my savings impacted?
Interest rates applied to savings accounts are reviewed when the base rate changes. The rates we offer on our savings products are calculated on a variety of factors such as base rate, market rates and the cost to us to provide these products.
When the base rate changes, savings rates may also be changed. There is no guarantee that they will change, including when or by how much.
It is important to know:
- when we increase our interest rates, they will be applied immediately then within the next 30 days, we'll tell you about the change on our website, by branch notices, national press adverts, statement messages or inserts or by writing to you
- when we decrease our savings rates we will inform you by personal notice at least two months before the change.
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