For the second time this year the Bank of England cut the base rate to 4.75% from 5% after it fell from 5.25% to 5% in August. This change can impact mortgage and saving rates as this is used by the central bank to charge other banks and lenders when they borrow money. The Bank of England use the base rate as a tool to control inflation, with a target of 2% for the Consumer Prices Index (CPI) measure of inflation, set by the government. Latest figures show that the CPI inflation fell to 1.7% in September 2024, the lowest since April 2021. As this is below the Banks target, The Monetary Policy Committee voted by majority of eight to one to reduce the base rate by 0.25 percent points to 4.75%. Explaining the reasons for its decision. Martin Lewis ( MSE Founder & Chair) stated “UK Bank of England Base rate DOWN 0.25% points to 4.75%, which means for mortgages that tracker rates will get cheaper by roughly £15 a month per £100,000 (variable and discount rates should drop too but don't have to go by the same amount).Your fixed rate mortgage will not change. Though the rate you can fix at may get cheaper (although as they're based on predictions of future interest rates some of this cut is already baked in).”