Interest rates lowered by the Bank of England

The Bank of England have announced a third cut in interest rates since August 2024.

Interest rates in the United Kingdom have been lowered by 0.25%, from 4.75% previously to 4.5%, the lowest base rate since June 2023.

This is the third time the base rate has been cut since August 2024, with potential of interest rates to fall even further in the coming months.

How lower interest rates can help businesses

Interest rates indicate the cost of borrowing, influencing what businesses have to pay for business loans and commercial mortgages.

By cutting interest rates to 4.5%, the price of borrowing is lower, with the aim of the cut to boost spending.

Businesses can therefore apply for business loans with lower interest rates, meaning business loans and commercial mortgages become a more appealing option, as the amount charged for repayment will likely be lower.

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