Money blog: Bank of England announces interest rate decision – and it’s bad news for borrowers | Money News

Savers will be “frustrated” by today’s decision after being hit by tumbling rates and high, sticky inflation.

The Bank of England held the base rate at 4% after making a 0.25% cut from 4.25% to 4% last month. 

Looking at the savings market, since the start of August 2025, the average easy access savings rate has fallen from 2.68% to 2.60%, and the average easy access ISA rate has decreased from 2.90% to 2.82%, Moneyfactscompare.co.uk said.

Analysis by the financial advice site found 976 savings accounts in September that beat inflation –  lower than the 1,606 inflation-beating deals it found in September 2024.

“Those savers frustrated to see their cash eroded by inflation might feel more inclined to secure a fixed rate bond or Isa in the coming months, with many paying a guaranteed return of 4% or more,” Rachel Springall, finance expert at Moneyfacts said. 

“It might be disheartening for savers to find the rate on their account has been cut over the past month, but now is not the time to become apathetic.”

Those with money idling in accounts paying less than the rate of inflation (3.8%) should shop around for a better deal, said Alice Haine, personal finance analyst at online investment platform Bestinvest.  

“Considering post-tax net returns is crucial, especially as fiscal drag pulls more of people’s income into higher income tax bands,” she said. 

You can read about the current inflation-busting savings accounts on the market in today’s Savings Guide…