A narrow Bank of England vote brought Bank Rate down to 5%

The event

The Bank of England announced a quarter-point reduction in Bank Rate to 5% on 1 August 2024. At the meeting ending the previous day, five Monetary Policy Committee members supported the cut and four preferred to hold the rate. The split shows that the decision was closely balanced.

Why it matters

For households and businesses, the policy rate is an important reference point, but individual mortgage, loan and savings rates need not move immediately or by the same amount. A divided vote also leaves room for different judgements about the next step. The 5% figure belongs to August 2024 and should not be read as the current rate.