The Bank of England has chosen to keep the base interest rate at 5.25%, defying expectations that it would increase it for a 15th consecutive time in a bid to tackle inflation. However interest rates – and therefore mortgage and savings rates – remain historically high. So when will interest rates fall?

Popular question: When will interest rates go down?The latest rise in August took the base rate from 5% to 5.25%, its highest level since the 2008 financial crash. The Bank of England met on 21 September and decided not to increase interest rates yet again. This is the Bank of England’s first meeting since 2021 in which it has not hiked the base interest rate.

The decision to maintain the base rate at its current level is mainly attributed to inflation having dipped. The annual inflation rate fell from 6.8% in July to 6.7% in August.

With inflation falling, experts now believe the rate will peak at around a lower-than-expected 5.75% in Spring 2024 before falling to just below 4% over the next five years.

September’s Bank of England meeting marks the first in which the Bank has not increased the base interest rate since 2021. Read more from Money Mentor at the Times >

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