Last month saw the base rate reduced for the first time since March 2020, falling from 5.25% to 5%, Since then inflation has remained steady at 2.2%.
Today, as many predicted, The Bank of England’s Monetary Policy Committee (MPC) has announced that the bank base rate will be held at 5%.
Eight members of the MPC voted to hold the interest rates, and one member voted to reduce the bank rate. There were no votes to increase the rate this time.
For our clients please note the changes in the interest rates which HMRC charge.
HMRC interest rates are set in legislation and are linked to the Bank of England base rate, these rates are:
- late payment interest – set at base rate plus 2.5%
- repayment interest – set at base rate minus 1%, with a lower limit of 0.5
This will mean no changes are currently required to HMRC’s late payment interest fees this month.
The next Bank of England announcement is set for 7 November 2024.
