Bank of England maintains interest rate at 5.25%

Bank of England maintains interest rate at 5.25%

09 May 2024

Danny Vassiliades, Partner at XPS Pensions Group, commented: “Though the Bank of England has maintained base rates at 5.25%, this is the first time in almost a year that more than one of the nine committee members have voted for a cut. This signals a clear shift towards lower rates, with many analysts already looking ahead to the next committee meeting in June for a possible rate cut.

Pension schemes should review the suitability of their funding and investment strategies to ensure that any future, unexpected rate cuts don’t adversely impact the current record funding levels that have seen around half of all DB pension schemes being fully buy-out funded.”