BoE holds interest rates at 3.75%: what it means for your money 

Today, 30 April, the BoE announced it will hold the base rate at 3.75%.  

This marks the third consecutive hold by the BoE, leaving the rate unchanged since it initially dropped in December 2025, and reflects the BoE’s cautious approach.  

Eight members of the BoE's Monetary Policy Committee (MPC) voted to keep the base rate at 3.75%, while the remaining one voted to increase the rate by 0.25%, to bring the rate to 4%. 

While the decision may not have been unanimous, markets largely anticipated a hold. Uncertainty about the impact of the Iran war on the UK’s economy, particularly on inflation and growth, led many to predict yet another hold.  

The UK’s current inflation rate is 3.3%, up from 3% in March, and still sitting above the BoE’s target of 2%.  

Prior to the outbreak of the conflict, markets had been pricing in one or two base rate cuts in 2026; however, this now seems unlikely, with investors cautious of a rate rise later this year.  

While the base rate remains unchanged for now, it still affects your money.  

Additionally, with uncertainty still rampant and potential base rate rises on the horizon, now may be the right time to review your finances and seek professional advice.  

What a base rate hold means for your mortgage 

For homeowners on a variable-rate or tracker mortgage, today's announcement means that monthly payments will remain unchanged.  

This gives homeowners some stability and predictability for now, although the possibility of future rate changes remains. 

If you have a fixed-rate mortgage, your repayments are unaffected by this decision.  

According to Rightmove, the average five-year fixed-rate mortgage is 5.20%, and the average two-year fixed-rate mortgage is 5.22%. 

However, it’s important to remember that the base rate is a key benchmark that influences the new deals lenders offer. When your current fixed term expires, the prevailing rate will determine the cost of refinancing. 

A  mortgage broker can increase the likelihood of your application being approved. 

What a base rate hold means for your savings 

Interest rates on savings accounts are likely to remain at their current levels for a while longer.  

This presents a valuable opportunity to shop around for high-interest savings accounts or to lock in a favourable fixed-rate bond deal. 

According to MoneySavingExpert, the most competitive savings rates are: 

• Easy-access savings accounts: 4.51%  

• Fixed term accounts (one year): 4.66%  

• Notice savings: 4.19%  

However, if you want higher returns and don't need immediate access to your money, investing is an option.  

While returns can be greater, the level of risk is much higher.  

If you do decide to invest, getting professional advice is beneficial.   

Unbiased can connect you with a financial adviser who can assist you in developing an investment strategy, evaluating your portfolio, or advising you on ways to reduce your tax obligations legally. 

What a base rate hold means for annuities 

For those approaching retirement, the stability of the base rate means annuity rates are also likely to remain steady.  

Annuities provide a guaranteed income for life, and their rates are closely linked to long-term interest rate expectations.  

A higher base rate generally results in more generous annuity payouts. 

Throughout 2025, annuity rates have soared by nearly 10%. However, once you purchase your annuity, you can lock in your rate. 

Get expert financial advice  

In the current uncertainty, making informed financial decisions is more important than ever.  

Whether you're managing your mortgage, growing your savings, or planning for retirement, seeking professional guidance can provide clarity and confidence. 

A qualified financial adviser can offer a personalised strategy to help you navigate the current climate and achieve your long-term goals. 

Unbiased can connect you with a financial adviser who can empower you to make the most informed decisions to achieve your goals.