Bank of England bank rate unchanged after 14 consecutive increases
The Bank of England bank rate has remained unchanged today. This follows the announcement at noon by the Bank of England’s Monetary Policy Committee (MPC). At the MPC’s meeting on 20 September 2023, it was voted by a small majority of 5 to 4 to maintain the Base Rate at 5.25%.
What is the Bank of England official bank rate?
The Bank of England official bank rate therefore remains at 5.25%. This was last increased following the MPC meeting on 3 August, when it increased by 0.25%.
Will interest rates rise again with future Bank of England base rate changes?
The Bank of England reviews the performance of the economy and considers interest rates should change eight times a year at its Monetary Policy Committee Meetings.
Two dates still remain for 2023. These are Thursday 2 November and Thursday 14 December. The 2024 dates have been confirmed and are available here.
Will any future interest rate rise affect your business?
Rises in interest rates often affect businesses in many ways. Therefore, it is important to understand how any future increases may affect businesses.
Innovation and Investment – Do interest rises affect spending on investment and innovation? R&D tax credits will help reduce costs here.
Current business loans. Consider how additional interest costs effect business loans and company credit cards, which can impact cashflow and profits.
Short term credit. Consider if the day-to-day operation of a business is on short-term bank credit, and if any future rate rises will affect this.
Foreign currency. For businesses that trade internationally or accept foreign payments, consider how future rate rises could affect the value of foreign currency income or reserves.
HMRC & late taxes. The late payment interest rate will remain the same for now, but any future increases could affect this.
Alexander & Co – business advice
If higher interest rates are affecting your business or investments, Alexander & Co can assist with tax and accountancy advice. From providing advice to make sure property portfolios are tax efficient to business restructuring and advice on becoming more tax efficient, our business advisors will ensure you receive expert advice.
To discuss our services and how we can assist you, please fill in the form below or email info@alexander.co.uk
