How did the August interest rate cut affect savings and mortgages?

Analysts at Moneyfacts have analysed the impact the last Bank of England interest rate cut had on personal finances. Here’s what they found.

A woman looks at her piggy bank as she ponders the effect of the last interest rate cut on her savings (image: Getty Images)
August's interest rate cut has begun to feed through to the mortgage and savings markets, Moneyfacts has found (image: Getty Images)
(Image credit: Getty Images)

Hopes of another interest rate cut have been dashed after the Bank of England held them at 5%.

Coming despite a hefty rate cut in the US by the Federal Reserve, the UK central bank’s decision follows the news that the rate of price rises across the economy remained at 2.2% in August. There are still expectations that the base rate will come down later in 2024. The next Bank of England decision will be released in November

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Henry Sandercock has spent more than eight years as a journalist covering a wide variety of beats. Having studied for an MA in journalism at the University of Kent, he started his career in the garden of England as a reporter for local TV channel KMTV.

Henry then worked at the BBC for three years as a radio producer - mostly on BBC Radio 2 with Jeremy Vine, but also on major BBC Radio 4 programmes like The World at One, PM and Broadcasting House. Switching to print media, he covered fresh foods for respected magazine The Grocer for two years.

After moving to NationalWorld.com - a national news site run by the publisher of The Scotsman and Yorkshire Post - Henry began reporting on the cost of living crisis, becoming the title’s money editor in early 2023. He covered everything from the energy crisis to scams, and inflation. He also has bylines in MoneyWeek.