# Bank holds interest rates as energy and memory chips set to lift inflation

By Andrew Prosser — 2026-07-30

Andrew Prosser, head of investments at InvestEngine, said: “While some people will be relieved to see the Bank of England Base Rate remain steady, a decision to hold does not necessarily mean the products consumers use every day will remain unchanged.

“Savings rates don’t automatically move in line with the Base Rate, while mortgage pricing is often influenced by expectations of future policy rather than any single announcement.

“Today’s decision is only part of the story. Investors will be looking just as closely at the Monetary Policy Committee’s vote split and its guidance on inflation and future interest rates. Those signals often tell us more about the direction of policy than the headline decision itself.

“The 6–3 vote, with three members favouring an increase, reveals a more hawkish split than expected and suggests the prospect of a future rate rise cannot be dismissed.

“With most investors holding a mixture of assets, it is important to make sure every part of a portfolio is working as hard as it can, regardless of the direction of interest rates.

“However, those investors who have traditionally relied on the full Cash ISA allowance may need to review how they structure their savings from April 2027, when the annual Cash ISA allowance is due to reduce.

“We’re already seeing investors think differently about how they manage cash, with just under one in five InvestEngine customers using an overnight-rate ETF as part of the way they manage money they don’t need to invest immediately.

“As the Cash ISA allowance reduces, more investors may consider a wider range of options for managing cash, including overnight-rate ETFs or money market funds, particularly for money that does not need to be instantly accessible. These products work differently from cash savings accounts and carry investment risk, but they are likely to become part of the conversation for more investors.

“For long-term investors, maintaining a disciplined investment strategy remains more important than reacting to individual announcements.”

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