Ahead of the Bank of England’s base rate decision, Harriet Guevara, Chief Savings Officer at Nottingham Building Society comments. Harriet highlights that this could be a pivotal moment for both savers and borrowers, with a potential rate cut signalling the start of a shift in the interest rate environment.
Harriet Guevara, Chief Savings Officer at Nottingham Building Society, comments ahead of the Bank of England’s rate decision: “With a rate cut now widely expected, this week could mark the start of a new chapter for interest rates, and for millions of savers and borrowers.
For savers, base rate reductions tend to feed through into lower returns over time, so this is an important moment to lock in value where you can. Fixed-rate savings products, especially Cash ISAs, remain compelling while rates are still relatively strong. With further cuts likely on the horizon, it makes sense to act sooner rather than later.
We’re also watching the Government’s ISA consultation closely. Any reform that limits how much of your allowance can be held in cash would be a blow for everyday savers, particularly those relying on ISAs to build a deposit, save for retirement, or create a financial safety net.
On the mortgage front, any reduction in the base rate could signal a gradual easing in the cost of borrowing. While we’re unlikely to see an immediate change in mortgage pricing, those coming to the end of fixed deals later this year may find better options opening up. Now is the time to review your finances and be ready to take advantage of changing conditions.”
