Bank of England Rate Decision Tomorrow — What Savers and Borrowers Should Know
By Samuel Mather-Holgate
Tomorrow is Bank Rate day, and the Bank of England faces a crucial decision on whether to cut interest rates again.
With inflation still running above target and political and economic uncertainty elsewhere, the stakes are high — and the outcome could directly affect mortgages, savings, and cost-of-living for your clients in Swindon and beyond.
✅ What the Bank of England Has Done Already
The Bank Rate stands at 4.25% following cuts in August 2024, November 2024, February 2025, and most recently May 2025
In June, the MPC voted 6–3 to hold rates steady at 4.25% — three members still supported a cut
What Are the Markets Predicting Now?
City analysts and economists expect a 0.25% rate cut on 7 August 2025, reducing the Bank Rate to 4.00%
The Shadow Monetary Policy Committee backs this view, pointing to rising unemployment (4.7%) and slowing wage growth as strong indicators that a cut is warranted.
Why the Bank Is Considering a Cut
Inflation remains high (3.6% in June), well above the Bank’s 2% target, but showing signs of moderating.
Economic growth is weak, and the labour market is softening — leading to unemployment rising again.
External pressures, including global tariff uncertainty and inflation from higher oil and food prices, complicate the outlook.
What Happens If Rates Drop to 4.00%?
If the Bank does cut rates:
Mortgage rates may fall, especially tracker and short-term fixed products.
Savings account interest rates will likely reduce too.
Currency markets may react sharply — potentially weakening the Pound.
Some forecasters see possible further reductions later in 2025, with rates possibly hitting 3.75% by year-end or lower in 2026 if economic weakness continues.
What It Means for Swindon Borrowers
Mortgages
Many lenders such as Barclays, Nationwide, Accord and Coventry BS have already cut fixed deals — anticipating a broader rate fall.
Deals that allow borrowing up to 6x income (e.g. Nationwide’s Helping Hand) are now accessible to more first-time buyers — but are not always appropriate unless affordability is tested carefully.
Savers
Cash ISA and savings rates may fall.
Fixed-term options or Stocks & Shares ISAs could become more attractive alternatives.
Why Advice Matters
A, independent adviser can secure a deal now and monitor it — switching to a better rate if a cheaper option appears before completion.
You’re not locked in — ensuring optimal value and peace of mind in volatile markets.
FAQs
When is the Bank of England making its decision?
The MPC decision is due on 7 August 2025 at 12:00pm BST.
Are interest rates likely to be cut again?
Yes — markets overwhelmingly expect a 0.25% cut to 4.00%, with more reductions possible later this year depending on inflation and growth data.
Will mortgage payments reduce if the rate is cut?
Many lenders are already offering reduced rates, and those on variable or tracker mortgages may see immediate reductions. Fixed-rate borrowers may benefit when their deal expires.
Should I wait or lock in a mortgage now?
With the right adviser, you can lock in now and still switch if rates fall further — combining flexibility with protection.
✅ Final Thoughts for Savers & Borrowers in Swindon
The upcoming Bank of England decision isn’t just a national headline — it’s a local event with financial consequences for those in Swindon.
Whether you’re saving for a goal, in a tracker mortgage, or hitting renewal time soon — now is the time to get advice.
At Mather & Murray Financial, we stay across the data so you don’t have to:
We track rate changes and market signals
We help secure current deals
We remain flexible — switching you to better options as they arise
CONTACT US 01793 261626
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