The Bank of England is expected to maintain current interest rates this week, disappointing many borrowers. Analysts predict that the Monetary Policy Committee, consisting of nine members, will opt to keep the base rate steady at 3.75% due to a recent uptick in inflation.
The committee is scheduled to announce its decision on Thursday at noon, with a keen focus on the meeting minutes for any hints about future rate cuts. Inflation has climbed to 3.4%, marking its first increase since July 2025, although the Bank anticipates it will approach 2% by the middle of the next year.
A decision to hold rates this month will be discouraging for mortgage holders, while offering relief to savers who have seen their deposits diminish. Victoria Scholar, head of investment at Interactive Investor, highlighted the importance of Thursday’s meeting in shedding light on a potential rate cut of 25 basis points in March or April, contingent on the latest economic data.
According to Link, the average person made 15 trips to ATMs in 2025, withdrawing an average of £1,352, down 5% from the previous year’s average withdrawal of £1,424. In total, individuals over 16 years old conducted 832 million cash withdrawals last year, representing a 9% decrease from 2024.
Premium Bond holders in Liverpool and Bedfordshire recently won £1 million each, with the winning bond numbers disclosed by National Savings & Investments. These winners are part of over 6.1 million Premium Bond prizes totaling £408 million distributed this month by ERNIE.
Nationwide Building Society reported a 0.3% recovery in average house prices last month following a decline in December. On a yearly basis, house prices rose by 1% in January, reaching an average of £270,873. Robert Gardner, Nationwide’s chief economist, expects housing market activity to pick up in the upcoming quarters, especially if the affordability trend seen last year continues.
Gold and silver prices have sharply declined from their peak levels due to the nomination of Kevin Warsh as the incoming chairman of the Federal Reserve by US President Donald Trump. Gold dropped 7% to over $4,500 per troy ounce, while silver fell 13% to $74 in early trading on Monday. Trump’s choice of Warsh eased investor concerns, strengthening the US dollar but leading to a drop in demand for safe-haven assets like gold and silver.
The precious metals had experienced a significant rally amid global uncertainty and trade tensions, with silver plummeting nearly 30% and gold witnessing its steepest single-day decline since 1983.