{"id":112119,"date":"2026-02-05T10:01:38","date_gmt":"2026-02-05T07:01:38","guid":{"rendered":"https:\/\/www.capitalfm.co.ke\/business\/?p=112119"},"modified":"2026-02-05T09:45:30","modified_gmt":"2026-02-05T06:45:30","slug":"bank-of-england-expected-to-hold-interest-rates","status":"publish","type":"post","link":"https:\/\/www.capitalfm.co.ke\/business\/2026\/02\/bank-of-england-expected-to-hold-interest-rates\/","title":{"rendered":"Bank of England expected to hold interest rates"},"content":{"rendered":"<div class=\"sc-9cd5bb24-0 cmjZrf\" data-component=\"headline-block\">\n<div class=\"sc-cd6075cf-0 DQtHs\">\n<div class=\"sc-82b3c53b-0 gmICnp\"><\/div>\n<\/div>\n<\/div>\n<div class=\"sc-9cd5bb24-0 jTWPCV\" data-component=\"image-block\">\n<figure class=\"sc-cd6075cf-0 laOREU\">\n<div class=\"sc-82b3c53b-0 ciXMDU\">\n<div class=\"sc-5340b511-1 cMIbKV\" data-testid=\"hero-image\"><\/div>\n<\/div>\n<\/figure>\n<\/div>\n<div class=\"sc-9cd5bb24-0 lmzibM\" data-component=\"text-block\">\n<div class=\"sc-cd6075cf-0 DQtHs\">\n<div class=\"sc-82b3c53b-0 IAFLu\">\n<p class=\"sc-9a00e533-0 eZyhnA\"><strong>FEB 5 &#8211; Interest rates are expected to remain on hold as the Bank of England&#8217;s Monetary Policy Committee (MPC) meets for the first time this year.<\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"sc-9cd5bb24-0 lmzibM\" data-component=\"text-block\">\n<div class=\"sc-cd6075cf-0 DQtHs\">\n<div class=\"sc-82b3c53b-0 IAFLu\">\n<p class=\"sc-9a00e533-0 eZyhnA\">The MPC cut the Bank rate from 4% to 3.75% in December, and suggested rates were\u00a0<a class=\"sc-f9178328-0 iCaRzc\" href=\"https:\/\/www.bbc.co.uk\/news\/articles\/cj01v7z73q1o\" target=\"_self\">&#8220;likely to continue on a gradual downward path&#8221;<\/a>.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"sc-9cd5bb24-0 lmzibM\" data-component=\"text-block\">\n<div class=\"sc-cd6075cf-0 DQtHs\">\n<div class=\"sc-82b3c53b-0 IAFLu\">\n<p class=\"sc-9a00e533-0 eZyhnA\">The Bank rate is the primary tool for the committee to try to keep inflation &#8211; which charts the annual rate of rising prices &#8211; as close to 2% as possible.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"sc-9cd5bb24-0 lmzibM\" data-component=\"text-block\">\n<div class=\"sc-cd6075cf-0 DQtHs\">\n<div class=\"sc-82b3c53b-0 IAFLu\">\n<p class=\"sc-9a00e533-0 eZyhnA\">It heavily influences the interest charged by lenders for loans and mortgages, and what banks and building societies give in returns to savers.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"sc-9cd5bb24-0 lmzibM\" data-component=\"text-block\">\n<div class=\"sc-cd6075cf-0 DQtHs\">\n<div class=\"sc-82b3c53b-0 IAFLu\">\n<p class=\"sc-9a00e533-0 eZyhnA\">The majority of analysts are predicting the MPC keeps the Bank rate on hold at 3.75% when it announces its latest decision at 12:00 GMT on Thursday.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"sc-9cd5bb24-0 lmzibM\" data-component=\"text-block\">\n<div class=\"sc-cd6075cf-0 DQtHs\">\n<div class=\"sc-82b3c53b-0 IAFLu\">\n<p class=\"sc-9a00e533-0 eZyhnA\">Inflation remains above target at 3.4%, according to the latest data for the year to December.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"sc-9cd5bb24-0 lmzibM\" data-component=\"text-block\">\n<div class=\"sc-cd6075cf-0 DQtHs\">\n<div class=\"sc-82b3c53b-0 IAFLu\">\n<p class=\"sc-9a00e533-0 eZyhnA\">The nine-member committee only narrowly voted for a cut in December and gave a fairly cautious view of the situation.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"sc-9cd5bb24-0 lmzibM\" data-component=\"text-block\">\n<div class=\"sc-cd6075cf-0 DQtHs\">\n<div class=\"sc-82b3c53b-0 IAFLu\">\n<p class=\"sc-9a00e533-0 eZyhnA\">Analysts say there has been little data so far this year to change the balance between persistent inflation and weak economic growth.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"sc-9cd5bb24-0 hoFfRa\" data-component=\"image-block\">\n<figure class=\"sc-cd6075cf-0 laOREU\">\n<div class=\"sc-82b3c53b-0 gmICnp\">\n<div class=\"sc-5340b511-1 cMIbKV\" data-testid=\"image\"><img decoding=\"async\" class=\"sc-5340b511-0 hLdNfA\" src=\"https:\/\/ichef.bbci.co.uk\/news\/480\/cpsprodpb\/ec73\/live\/67ae1c60-01dd-11f1-b7e1-afb6d0884c18.png.webp\" alt=\"A line chart showing interest rates in the UK from January 2021 to February 2026. At the start of January 2021, rates were at 0.1%. From late-2021, they gradually climbed to a high of 5.25% in August 2023, before being cut to 5% in August 2024, 4.75% in November, 4.5% in February 2025, 4.25% in May, and 4% in August. At the Bank of England's latest meeting on 18 December, rates were cut to 3.75%.\" \/><\/div>\n<\/div>\n<\/figure>\n<\/div>\n<div class=\"sc-9cd5bb24-0 lmzibM\" data-component=\"text-block\">\n<div class=\"sc-cd6075cf-0 DQtHs\">\n<div class=\"sc-82b3c53b-0 IAFLu\">\n<p class=\"sc-9a00e533-0 eZyhnA\">There is also an expectation that the Bank will be vague about when or by how much it will cut the Bank rate during the year as it awaits a clearer picture on inflation.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"sc-9cd5bb24-0 lmzibM\" data-component=\"text-block\">\n<div class=\"sc-cd6075cf-0 DQtHs\">\n<div class=\"sc-82b3c53b-0 IAFLu\">\n<p class=\"sc-9a00e533-0 eZyhnA\">Some analysts are suggesting one rate cut during 2026, while others believe the MPC could decide on two cuts.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"sc-9cd5bb24-0 cJKYng\" data-component=\"subheadline-block\">\n<div class=\"sc-cd6075cf-0 DQtHs\">\n<div class=\"sc-82b3c53b-0 gmICnp\">\n<h2 class=\"sc-f98b1ad2-0 gXmhTb\">How rates affect your finances<\/h2>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"sc-9cd5bb24-0 lmzibM\" data-component=\"text-block\">\n<div class=\"sc-cd6075cf-0 DQtHs\">\n<div class=\"sc-82b3c53b-0 IAFLu\">\n<p class=\"sc-9a00e533-0 eZyhnA\">Around a third of households have a mortgage. Of those, about one million have tracker or variable mortgages that tend to change when the Bank rate changes.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"sc-9cd5bb24-0 lmzibM\" data-component=\"text-block\">\n<div class=\"sc-cd6075cf-0 DQtHs\">\n<div class=\"sc-82b3c53b-0 IAFLu\">\n<p class=\"sc-9a00e533-0 eZyhnA\">The vast majority of mortgage customers have fixed-rate deals. While their monthly payments are not immediately affected by a rate change, future deals can be.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"sc-9cd5bb24-0 lmzibM\" data-component=\"text-block\">\n<div class=\"sc-cd6075cf-0 DQtHs\">\n<div class=\"sc-82b3c53b-0 IAFLu\">\n<p class=\"sc-9a00e533-0 eZyhnA\">Fixed mortgage rates, for those renewing or signing up to a new deal, fell at the start of the year as lenders competed for customers.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"sc-9cd5bb24-0 lmzibM\" data-component=\"text-block\">\n<div class=\"sc-cd6075cf-0 DQtHs\">\n<div class=\"sc-82b3c53b-0 IAFLu\">\n<p class=\"sc-9a00e533-0 eZyhnA\">However, broader pressures faced by lenders have shown signs of going up, with commentators saying that could stall any further cuts.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"sc-9cd5bb24-0 lmzibM\" data-component=\"text-block\">\n<div class=\"sc-cd6075cf-0 DQtHs\">\n<div class=\"sc-82b3c53b-0 IAFLu\">\n<p class=\"sc-9a00e533-0 eZyhnA\">The Bank rate cut in December and conditions thereafter have led to cuts in the interest paid by savings account providers to their customers.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"sc-9cd5bb24-0 lmzibM\" data-component=\"text-block\">\n<div class=\"sc-cd6075cf-0 DQtHs\">\n<div class=\"sc-82b3c53b-0 IAFLu\">\n<p class=\"sc-9a00e533-0 eZyhnA\">Rachel Springall, from financial information service Moneyfacts, said: &#8220;The slaughter of savings rates will sadden hard-pressed savers. Since the start of this year, more than two-thirds (70%) of savings providers have cut their rates.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"sc-9cd5bb24-0 lmzibM\" data-component=\"text-block\">\n<div class=\"sc-cd6075cf-0 DQtHs\">\n<div class=\"sc-82b3c53b-0 IAFLu\">\n<p class=\"sc-9a00e533-0 eZyhnA\">&#8220;As inflation remains well above target, real returns on cash savings are weak and this can lead to a dangerous attitude of apathy.&#8221;<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"sc-9cd5bb24-0 lmzibM\" data-component=\"text-block\">\n<div class=\"sc-cd6075cf-0 DQtHs\">\n<div class=\"sc-82b3c53b-0 IAFLu\">\n<p class=\"sc-9a00e533-0 eZyhnA\">The MPC has eight meetings a year and, after the latest meeting, it will also publish its quarterly Monetary Policy Report, which sets out its economic analysis and projections on which it bases its decision.<\/p>\n<p><strong>By BBC<\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The MPC cut the Bank rate from 4% to 3.75% in December, and suggested rates were\u00a0&#8220;likely to continue on a gradual downward path&#8221;.<\/p>\n","protected":false},"author":13285,"featured_media":112120,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[6421,8556,7541,3557],"coauthors":[701],"class_list":["post-112119","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-world","tag-bank-of-england","tag-expected","tag-hold","tag-interest-rates"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.7.1 (Yoast SEO v25.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Bank of England expected to hold interest rates - Capital Business<\/title>\n<meta name=\"description\" content=\"The MPC cut the Bank rate from 4% to 3.75% in December, and suggested rates were\u00a0&quot;likely to continue on a gradual downward path&quot;. 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