Bank of England interest rate announcement date for September as government vows to halve inflation
The Bank of England will announce its latest review of the base rate later this week.
It comes as the central Bank continues to struggle to bring inflation down to the government's previous goal of halving it by the end of year. Currently, inflation stands at 6.8 per cent as of July, down from 7.9 per cent in June.
While this should be a positive statistic, it is still quite high compared to pre-pandemic levels. Furthermore, the Bank of England previously decided to raise interest rates for the 14th time in a row to 5.25 per cent which directly affects money paid back on loans and mortgages.
Read more: HMRC urges hundreds of thousands of young adults to check if they're owed £2,000
It is not yet clear what decision the Bank will make on Thursday, September 20. It is possible it may increase rates again to 5.5 per cent or more in a bid to control inflation, however, lower inflation rates across the board this month may help sway that decision.
Read more: Martin Lewis urges people to 'stock up' on this £1 item ahead of Christmas
The BoE raises interest rates to ensure that inflation is brought down. The Bank's Base Rate is factored by the country's economical situation and it is up to the Bank to decide what will bring down the rate of inflation over the next few years.
Last August, the Bank decided to hke interest to 5.25 per cent. This is the 14th consecutive hike from the Bank since December 2021.
There is a slightly lesser chance of the Bank driving up inflation again, or at least dramatically, as previous increases, due to inflation beginning to drop down slightly from June to July. However, the Bank may see this as a sign that interest hikes are helping to keep inflation under control and could raise them again