The base rate has been held at 4.5% by the . The base rate is the that the Bank of England charges other banks and lenders to borrow money.

This then influences the interest rates that these banks and lenders charge you, as their customer, when you borrow money from them - for example, if you have a or loan - as well as the return you get on your . Interest rates have started to come down steadily over the last few months, having reached a peak of 5.25% in August 2023.

The base rate remained at this level for a whole year, until August 2024, when the Bank of England finally announced a cut to 5%. The Bank of England has announced a further two cuts since then, to take the base rate to its current level of 4.5%. The most recent cut was announced during its latest meeting in February 2025.

Economists had widely predicted the base rate would be held at 4.5% today after in January. The Bank of England has a target of 2% inflation and uses interest rates as its main tool to control the rate of price rises. There is also uncertainty with the global economy following the tariff policies being imposed by Donald Trump in the US.

Eight out of the nine members of the Bank of England Monetary Policy Committee (MPC) voted to keep rates on hold. Andrew Bailey, Governor of the Bank of England, said: “There’s a lot of economic uncertainty at the moment. We still think that interest rates are on a gradually declining path, but we’ve held them at 4.5% today.

“We’ll be looking very closely at how the global and domestic economies are evolving at each of our six-weekly rate-setting meetings. Whatever happens, it’s our job to make sure that inflation stays low and stable.”

If you have a tracker mortgage, you won't see any change to your monthly payments as these type of mortgage deals move in line with the base rate. If you have a standard variable rate (SVR) mortgage then your deal can change at any time, though they do roughly tend to move in line with the base rate too.

More than 1.2 million people are on a tracker or SVR mortgage. There are around 1.3 million households on a tracker or SVR mortgage. If you have a fixed rate mortgage, your payments won't change today as you've already agreed to pay a fixed amount each month for a set period of time.

However, if you fixed your current deal before interest rates started to rise, then you may find you'll pay much more going forward when you come to remortgage. If you don't fix into a new deal, you'll usually be moved to the SVR of your existing lender once your current mortgage deal ends. An estimated 1.8 million fixed rate mortgages are set to expire in 2025.

Ben Thompson, Deputy CEO of Mortgage Advice Bureau said: “The Bank of England’s decision to hold the base rate at 4.5% shouldn’t give prospective and current homebuyers much cause for concern. A small rise in inflation and a degree of global economic uncertainty calls for a cautious approach, and many people will no doubt feel a sense of relief that the Bank is playing it safe.

“With the Spring almost upon us, all eyes are now firmly on the Chancellor to explore alternative avenues to foster a more accessible housing market and make homeownership a more affordable prospect for aspiring first time buyers. Whether you think you’re able to buy now or further down the line, speak to a mortgage adviser. With their expert guidance and support, you can get mortgage ready sooner than you think, and secure the right deal for your financial circumstances.”

If your credit card is linked to the base rate, then how much you pay back in interest can be affected when it changes. If this applies to you, then you shouldn't see any changes today. The average credit card purchase APR is 35.4%, according to Moneyfacts. Interest rates on personal loans and car financing are normally fixed, so these should not change as you have already agreed set repayments.

If you are planning on taking out a new credit card or loan, you will likely find the rates on offer are still higher than they were previously. Holly Tomlinson, financial planner at Quilter said: "With today's decision to hold rates, credit costs won’t rise further for now, but they are unlikely to fall significantly in the short term.

"For those planning to borrow, it’s important to shop around and avoid taking on unnecessary debt, as rates will remain higher than they were just a couple of years ago."

Saving rates have eased from the recent highs, following the previous Bank of England cuts - but there are still plenty of deals out there that beat the rate of inflation. Cash ISAs currently pay more than easy-access accounts and the best rate is 5.25% from Trading 212. You can pay up to £20,000 into an ISA each tax year and any interest you make is free from tax.

The top easy-access rate today is from Monument Bank and this pays 4.75% - however, you're only allowed three withdrawals a year. The best notice account is from Oxbury Bank and this pays 4.8% with a 90-day notice period. For those who can afford to lock their cash away, Cynergy Bank, Secure Trust Bank and Vanquis Bank all offer 4.6% for their respective one-year fixed account.

Regular savings accounts offer the best rates, but you're normally only allowed to make small deposits each month and some accounts restrict how many withdrawals you can make. Principality Building Society pays 7.5% fixed for six months but you can only deposit up to £200 each month.

Victor Trokoudes, founder and CEO of money app Plum, said: “A continued high base rate means banks will continue to offer decent rates on savings for a while longer. Don’t assume your high street bank will give you a good deal though – it’s essential to shop around to find the highest interest rates.

“Fintechs and smaller providers are often able to be more flexible on rates and may even be offering special deals to help boost your savings. As the financial year comes to a close, ensure your interest is protected from tax by saving into an ISA. With best-buy cash ISA rates above 5% currently, there’s no excuse not to be using a tax wrapper."

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