I might be a pessimist here but I don’t think it will dent inflation this time, which I feel like the BOE have somewhat lost control of.
It will dent house prices I guess. And we’ll get a small rise in general savings rates. I really hope Monzo pass this on, otherwise their premium model is only .5% above base rates, which feels dismal.
Some will certainly, but they’ll have to balance that against the providers who offer the higher rate and the potential exodus of money to those. I reckon we’ll see a good selection of savings accounts with higher rates now
Higher rates will take a hot lance through house prices. Seems we are in for more rises, too, as (a) inflation is very high, and (b) the split on votes was 4/5 with the 4 in the minority trying to raise rates even higher this month.
I used to borrow from Egg at 0% to save at 8% or more (I’m sure I remember 10%) with them. Transfer from a 0% card and withdraw from savings to make the minimum payment each month - in the days when you could do that kind of thing.