Interest rates: what’s happening with interest rates UK today?

What’s happening with interest rates?


We analyse interest rates after an announcement from the Bank of England on November  4th, 2021 that rates will remain unchanged.   

Interest Rates Today


The Bank of England have announced that there will be no change to interest rates at the start of November. These  rates and inflation are closely linked and the Bank of England have decided to make no change. In general low rates mean a growing economy and some inflation.  

The market was anticipating a rise but the BOE have resisted. More time is required to assess the effect of furlough on the labour market. However, inflation could hit 5% next year but rates of interest will remain at 0.1% for at least another month. 

The decision to maintain the status quo with interest rates UK today has led to the pound falling against the US dollar. Despite no change, the Quarterly Policy Report suggests the cost of borrowing will rise imminently. Andrew Bailey, the BOE Governor, said it was a close call this time.

Interest Rates and Inflation


True Cost Mortgages Mike Roberts has analysed the current situation with the interest rates mortgage UK dynamic and says: “There has been much talk in the Press about interest rate rises and with inflationary pressures building a rate hike is likely sooner rather than later.”

However, that sooner will be December at the earliest as Mike speculates by continuing:

“When the Bank makes the move is anybody’s guess but as we come out of lockdown and start spending the money many have saved, inflation is likely to rise above the current 2% target so the BOE will have to act to stop inflation racing away”

“Any inflation will make mortgage rates increase again and the days of historic lows will be over”. Mike regularly offers expert opinions on matters mortgages on the True Cost Mortgages blog.   

The BOE share his thoughts on inflation and predicts 5% in 2022. This would be one of the highest inflation forecasts since 1997, when the Bank became independent.  The implications for economic growth post-Covid are that recovery is forecast to take longer than initially expected.     

So, rather than answering the question: “What’s happening with interest rates?” we should perhaps be asking can the Bank of England control inflation throughout 2022?

Interest Rates Today FAQ’s


Here are the answers to some common question about interest rates today: 

Did the Bank of England announce an interest rates rise?


The BOE decided not to increase interest rates this month.

What are the inflation forecasts?


Inflation is anticipated to rise to 5% in 2022.

Will mortgages become more expensive?


Inflation will lead to an increase in the cost of mortgages. 


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