The Bank of England holds interest rates: what it means for savers and borrowers

Financial expert Robyn Denning fro Raisin UK discusses the latest interest rate decision by then central bank.

Transcript

00:00 The interest rates have been maintained mainly from inflation, so we have a target rate of

00:06 2% and over the course of the last few months it has been coming down. So we've made a massive

00:11 improvement from where it was last summer and even the summer before that. So it was

00:17 as high as 11% and now we're down for a bit more manageable target of around 3%. So at

00:23 the moment we've still got a bit of a way to go in terms of getting inflation down to

00:28 that 2% and there's a few things that need to factor into that and we need to prove that

00:33 inflation holds at that lower rate as well. So that's led to the recent decision of holding

00:38 the base rate at the 5.25 rates.

00:42 When do we expect it to be a bit more generous, the rate, when will it go down again do you

00:46 think?

00:47 I think it's up in the air at the moment. I think Andrew Bailey is obviously feeling

00:52 like we are making improvements, it could come in June, however most analysts are saying

00:57 that it's going to be in August.

00:58 [BLANK_AUDIO]