The Bank of England is expected to maintain current interest rates, disappointing many borrowers. Analysts predict that the Monetary Policy Committee, consisting of nine members, will decide to keep the base rate steady at 3.75% due to a recent uptick in inflation. The committee will reveal its verdict on Thursday at noon, with keen attention on the meeting minutes for any hints on potential future rate cuts.
Inflation has climbed back to 3.4%, marking the first increase since July 2025. The Bank anticipates inflation to approach 2% by the middle of the following year. While a rate freeze this month may disappoint mortgage borrowers, it will offer relief to savers who have seen deposit rates decline.
Victoria Scholar, Interactive Investor’s head of investment, emphasized the significance of Thursday’s update, focusing on potential indications of a 25 basis point rate reduction by the Bank of England in March. The decision to cut rates in March or April will hinge on the most recent inflation and employment data.
According to ATM network operator Link, the average person made just 15 trips to ATMs in the previous year. The average withdrawal amount in 2025 was £1,352, a 5% drop compared to the previous year. In total, individuals above 16 years old made 832 million cash withdrawals in 2025, representing a 9% decrease from 2024.
Two fortunate Premium Bond holders from Liverpool and Bedfordshire each won £1 million jackpots. The winning Bond numbers are 489TB013219 and 040QJ919368, held by individuals from Central Bedfordshire and Liverpool, respectively. These winners are part of over 6.1 million Premium Bond prizes totaling £408 million drawn by ERNIE this month.
The Nationwide Building Society reported a 0.3% recovery in the average house price last month following a decline in December. Year-on-year, prices rose by 1% in January, bringing the average house price to £270,873. Nationwide’s chief economist, Robert Gardner, anticipates a rebound in housing market activity in the upcoming quarters, especially if the affordability trend from the previous year continues.
Gold and silver prices have sharply retreated from their peak in response to US President Donald Trump’s nomination for the next Federal Reserve chairman. Gold dropped 7% to slightly above $4,500 per troy ounce, while silver fell 13% to $74 in early Monday trading. The sell-off ensued after Trump selected Kevin Warsh as the potential replacement for current chairman Jerome Powell, calming investor concerns and leading to a decline in gold and silver prices.
Both gold and silver had been experiencing record highs as investors sought safe havens amid global uncertainties before the recent slump.