When is the next interest rates announcement and will they increase?

The Office for National Statistics (ONS) announced UK annual inflation has continued to fall, dipping to 3.2 per cent in March 2024, its lowest level in more than two years.

However, it may take up until the autumn before the Bank of England decides to cut interest rates.

According to the ONS's Consumer Prices Index (CPI), prices increased by 0.6 per cent in March 2023 as opposed to 0.8 per cent in the previous year. Food had the biggest decline, according to the ONS, with prices growing less than a year earlier. The same can’t be said for motor fuel, which has increased in price. The core CPI, which excludes volatile statistics related to food, energy, alcohol, and tobacco, was 4.7 per cent in March 2024, down from 4.8 per cent in the previous month.

Grant Fitzner, ONS chief economist, said: “Inflation eased slightly in March to its lowest annual rate for two-and-a-half years. Once again, food prices were the main reason for the fall, with prices rising by less than we saw a year ago.

“Similarly to last month, we saw a partial offset from rising fuel prices.”

The Bank of England has kept interest rates at 5.25 per cent, as it forecast that inflation is set to fall to its target level a year-and-a-half earlier than expected, much to the relief of many mortgage owners.

The UK central bank began raising interest rates as the pandemic came to an end and energy costs began to rise. The Monetary Policy Committee of the bank, which sets interest rates, increased rates 14 times between December 2021 and August 2023, sending them skyrocketing from an all-time low of 0.1 per cent to their current high of 5.25 per cent.

Brits have been battered with interest rates hiked over previous years, and now no longer have confidence that things will get better any time soon, according to a study.

A recent Bank of England survey revealed the public believes that inflation will still be too high in late 2028.

The Bank of England/Ipsos Inflation Attitudes Survey suggests that the public doubts the Bank’s ability to bring inflation down to the two per cent target. When asked what they expect the rate of inflation to be a year from now, respondents gave a median answer of 3.3 per cent. For three years from now, they said 2.8 per cent. In five years, they said it would be 3.2 per cent.

The Bank of England met on March 21 to decide what level the interest rate should be set at. They have confirmed it will be stay at 5.25 per cent. The Monetary Policy Committee, inside the Bank of England, determines the base rate.

The committee reveals its decisions about interest rates every six weeks, alongside factors that have led to the verdict.

You can find out more about why interest rates rise in our guide.

The MPC meets eight times a year to discuss whether it should raise or cut interest rates, or keep them the same.

The last meeting took place on March 21, when it decided to maintain interest rates at 5.25 per cent. 

The next interest rate meeting will take place on May 9, 2024.

The remaining five meetings will take place on these dates: