{"id":645210,"date":"2026-06-18T11:50:11","date_gmt":"2026-06-18T11:50:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/645210\/"},"modified":"2026-06-18T11:50:11","modified_gmt":"2026-06-18T11:50:11","slug":"bank-of-england-holds-interest-rates-at-3-75-3","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/645210\/","title":{"rendered":"Bank of England holds interest rates at 3.75%"},"content":{"rendered":"<p>What are interest rates?published at 11:10 BST<\/p>\n<p>11:10 BST<\/p>\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\">Interest is the extra amount you get charged when you borrow money. So, if someone lends you \u00a310 at a 10% interest rate, you&#8217;ll pay them back \u00a311. That&#8217;s the \u00a310 you borrowed plus an extra \u00a31 (10% of \u00a310) in interest.<\/p>\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\">The Bank of England sets a base interest rate, also known as the Bank Rate, which is what it charges other lenders to borrow money. <\/p>\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\">The base rate is the most important interest rate in the UK as it influences all other interest rates. When it changes, it affects the loans and savings deals that High Street banks and building societies and other lenders charge their customers.<\/p>\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\">What happens when interest rates change?<\/p>\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\">When interest rates rise, it becomes more expensive to borrow money and, when they drop, it becomes cheaper. Interest rates rose after the Covid pandemic &#8211; climbing to more than 5% before falling back.<\/p>\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\">If the base rate goes up, the monthly repayments on mortgages tend to go up too, but this depends on the type of mortgage you have. <\/p>\n<p class=\"ssrcss-1q0x1qg-Paragraph e1jhz7w10\">If you have savings, higher interest rates should mean the interest you earn goes up &#8211; since you&#8217;re basically lending the bank your money.<\/p>\n<p><img decoding=\"async\" alt=\"A five pound note, two ten pound notes and two twenty pound notes poke out of a black leather waller that is also holding several credit cards in the front\" loading=\"lazy\" src=\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/06\/c5a79f59-e939-4fa6-bfe4-aba09d5b23a7.jpg.webp\"  width=\"3000\" height=\"1832\" class=\"ssrcss-egie1y-Image edrdn950\"\/>Image source, PA Media<\/p>\n","protected":false},"excerpt":{"rendered":"What are interest rates?published at 11:10 BST 11:10 BST Interest is the extra amount you get charged when&hellip;\n","protected":false},"author":2,"featured_media":645211,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,1294,56,54,55],"class_list":["post-645210","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\/645210","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=645210"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/645210\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/645211"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=645210"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=645210"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=645210"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}