The Bank of England has decided to keep interest rates at 3.75% for the fifth consecutive meeting, which is economist-speak for “we have no idea what we’re doing, so we’re doing nothing.” This is the lowest rate since February 2023, which sounds reassuring until you remember that your mortgage has somehow gotten more expensive anyway.
The real genius of this strategy is its implicit faith in British resilience. The Bank is essentially saying: you know what? Your salary hasn’t moved. Your rent has tripled. Beans are now a luxury item. But surely you can figure it out. You’re British. You’ve survived worse. You’ve made a cup of tea with the same bag four times. You can handle this.
What the steady rate actually means is that the Bank thinks inflation is close enough to manageable that they don’t need to keep crushing your ability to borrow money. But they also don’t think things are good enough to make borrowing cheaper. It’s the financial equivalent of a shrug. Your mortgage won’t get worse, but it won’t get better either. The Bank is betting that you’ll just… adapt. Like those creatures in nature documentaries that evolve to eat rocks.
If you were hoping for a rate cut to make your mortgage payments slightly less soul-destroying, you’re looking at late this year at the earliest. Until then, the Bank’s message is clear: the economy is fine, you’re fine, everything is fine. Now go buy some more own-brand beans and stop complaining.