Interest Rates: Cost of Living
(asked on 26th February 2026) - View Source
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the impact on household budgets of the Bank of England's decision in January to reduce the base rate to 3.75 per cent.
This question was answered on 11th March 2026
In December 2025, the Monetary Policy Committee (MPC) at the Bank of England announced its decision to reduce the Bank Rate to 3.75%. The MPC has the government's full support as it acts to return inflation to the 2% target sustainably. This was the sixth interest rate cut since the election. Those interest rate cuts will save households over £1,300 a year on a typical new 2-year fix for a £215,000 mortgage over a 29-year term.