Charlotte Kennedy, chartered financial planner at Rathbones, said: “The decision to hold interest rates comes as little surprise. The Bank of England is still assessing how much of the recent energy shock linked to the conflict in the Middle East will feed through to the wider economy.
“The key question for policymakers is whether higher energy costs become embedded in broader domestic price pressures and wages.
“For now, underlying inflation pressures appear relatively contained, with core inflation remaining steady and wage growth continuing to cool. That has given the Bank scope to leave rates unchanged while it gathers more evidence.
“For homeowners on tracker mortgages, today’s decision offers some welcome breathing space, while savers may continue to benefit from competitive savings rates for a little longer.
“Those with a longer-term horizon may also want to consider investing as part of a broader financial plan, as it offers the potential for higher returns over time, albeit with greater risk.
“The outlook remains uncertain, and economic shocks have a habit of arriving uninvited. The best defence is not trying to second-guess the Bank’s next move, but making sure your finances are robust enough to weather whatever comes next.
“That could mean strengthening emergency savings, paying down expensive debt and ensuring longer-term money is working hard enough to keep pace with inflation and support future financial goals.”
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