Around a third of households have a mortgage. Of those, about one million have tracker or variable mortgages that tend to change when the Bank rate changes.
The vast majority of mortgage customers have fixed-rate deals. While their monthly payments are not immediately affected by a rate change, future deals can be.
Fixed mortgage rates, for those renewing or signing up to a new deal, fell at the start of the year as lenders competed for customers.
However, broader pressures faced by lenders have shown signs of going up, with commentators saying that could stall any further cuts.
The Bank rate cut in December and conditions thereafter have led to cuts in the interest paid by savings account providers to their customers.
Rachel Springall, from financial information service Moneyfacts, said: “The slaughter of savings rates will sadden hard-pressed savers. Since the start of this year, more than two-thirds (70%) of savings providers have cut their rates.
“As inflation remains well above target, real returns on cash savings are weak and this can lead to a dangerous attitude of apathy.”
The MPC has eight meetings a year and, after the latest meeting, it will also publish its quarterly Monetary Policy Report, which sets out its economic analysis and projections on which it bases its decision.
