{"id":50107,"date":"2025-08-07T10:28:08","date_gmt":"2025-08-07T10:28:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/50107\/"},"modified":"2025-08-07T10:28:08","modified_gmt":"2025-08-07T10:28:08","slug":"bank-of-england-expected-to-cut-interest-rates-live-updates","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/50107\/","title":{"rendered":"Bank of England expected to cut interest rates – live updates"},"content":{"rendered":"

What are interest rates?published at 10:01 British Summer Time<\/p>\n

10:01 BST<\/p>\n

\"\"Michael Race
Business and economics reporter<\/p>\n

Put simply, interest is the extra amount you get charged when you borrow money.<\/p>\n

Say someone lends you \u00a310 at a 10% interest rate, you’ll pay them back \u00a311 – the \u00a310 you borrowed, plus an extra \u00a31 in interest (10% of \u00a310).<\/p>\n

The Bank of England’s base interest rate, which is being set today, dictates what rates most high street banks and lenders set for things – ranging from mortgages to credit cards and savings accounts.<\/p>\n

When the Bank puts up its rate, it gets more expensive to borrow money, but it also means that returns on savings accounts, which accrue interest, go up. <\/p>\n

When rates drop, as they are expected to today, borrowing becomes cheaper and saving rates typically go down.<\/p>\n

The Bank of England’s job is to keep inflation, which is the rate prices rise at for goods and services, at an annual rate of 2%. It uses interest rates to try to keep it at that level.<\/p>\n

When rates rise, people tend to spend less and save more. That slows the demand for goods and services, which can limit price rises and thus cool inflation.<\/p>\n","protected":false},"excerpt":{"rendered":"What are interest rates?published at 10:01 British Summer Time 10:01 BST Michael RaceBusiness and economics reporter Put simply,…\n","protected":false},"author":2,"featured_media":50108,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,1294,56,54,55],"class_list":["post-50107","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/50107","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=50107"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/50107\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/50108"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=50107"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=50107"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=50107"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}