Commenting on the Monetary Policy Committee’s decision to hold the Bank of England’s base rate, Jill Mackay, savings expert at financial mutual Scottish Friendly, says
“Keeping the base rate on ice is sensible when inflation is (1) uncertain, but the economy (2) and labour market (3) remain fragile and unable to absorb higher borrowing costs easily.
“While the official inflation rate is slowing (4), that does not mean prices are falling – they are simply rising at a slower pace. Many households will therefore continue to feel pressure when paying for food, energy and everyday services, despite June’s more encouraging reading.
“With hiring demand weakening and growth still subdued, there is not enough strength in the economy to make a rate rise easy (5). As such, today’s decision avoids turning up the pressure on borrowers and businesses while giving policymakers more time to judge whether recent price pressures persist.
“For many households, however, a hold guarantees neither cheaper mortgages (6) nor an end to the cost-of-living squeeze (7), making it important to keep reviewing savings rates, household bills and existing borrowing.
“For those with sufficient financial headroom and a long-term outlook, getting organised now and investing, for example through a stocks and shares ISA could also form part of a plan that could make their money work harder and strengthen future financial resilience."
(1) Source: https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/june2026
(2) Source: https://www.ons.gov.uk/economy/grossdomesticproductgdp/bulletins/gdpmonthlyestimateuk/may2026
(4) Source: https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/june2026