The Bank of England is expected to maintain its current interest rates, disappointing many borrowers. Financial experts anticipate that the Monetary Policy Committee, comprised of nine members, will opt to keep the base rate steady at 3.75%, citing a recent uptick in inflation as a key factor.
The committee is scheduled to announce its decision on Thursday at midday, with particular attention on the meeting minutes for any indications of a potential future rate cut. Inflation has climbed back to 3.4%, marking its first increase since July 2025. The Bank projects inflation to approach 2% by the middle of the following year.
A decision to hold rates this month would be unfavorable for mortgage borrowers but beneficial for savers who have witnessed a decline in deposit returns. Victoria Scholar, Interactive Investor’s head of investment, highlighted the significance of Thursday’s focus for investors, emphasizing the possibility of a 25 basis points rate cut in March or April, contingent upon the latest inflation and employment data.
Last year, the average person made only 15 trips to ATMs, according to Link, the ATM network operator. The average cash withdrawal in 2025 was £1,352, representing a 5% decrease from the previous year. Overall, individuals over 16 years old made 832 million cash withdrawals in the past year, a 9% drop compared to 2024.
Two fortunate Premium Bond holders in Liverpool and Bedfordshire each won a £1 million jackpot, according to National Savings & Investments. The winning Bond numbers, 489TB013219 and 040QJ919368, were held by individuals who purchased the maximum allowed £50,000 worth of Bonds. The total Premium Bond prizes drawn this month exceeded £408 million.
Nationwide Building Society reported a 0.3% recovery in the average house price last month following a decline in December. On a yearly basis, house prices rose by 1% in January, reaching an average of £270,873. Nationwide’s chief economist, Robert Gardner, expressed optimism about the housing market’s potential recovery in the upcoming quarters.
Gold and silver prices experienced a rapid retreat from record highs due to US President Donald Trump’s nomination for the incoming Federal Reserve chairman. Gold dropped 7% to just over $4,500 per troy ounce, while silver plummeted 13% to $74. The sell-off was triggered by Trump’s selection of Kevin Warsh as the future Fed chairman, which boosted the US dollar and led to decreased demand for safe-haven assets like gold and silver.
The significant declines in gold and silver prices followed a period of record-breaking rallies driven by global geopolitical uncertainties and trade tensions.