Despite a decade of rock-bottom interest rates, the Bank of England is under pressure again to cut rates after new data showed the economy went into reverse before December’s general election.
The actions of central banks can seem distant to everyday life, but have significant ramifications for the cost of borrowing and rates savers receive on their cash. Here, we look at where rates could go and how it will affect consumers.
When the Monetary Policy Committee meets on January 30, the health of the British economy will be the main talking point.
GDP slumped by 0.3pc in November from a month earlier, according to the Office for National Statistics. Meanwhile, inflation has declined steadily since 2018 and now sits at just 1.3pc. The pound has slipped on the gloomy numbers, reaching 0.7pc against the dollar to below $1.30 for the first time this year.