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 will announce its decision on Thursday at noon, with keen interest on the meeting minutes for any indications of a potential rate cut in the near future. Inflation has climbed back to 3.4%, marking the first increase since July 2025, with the Bank projecting it to approach 2% by the middle of the following year.
A decision to hold rates this month would be a setback for mortgage holders, but a welcomed relief for savers who have witnessed a decline in deposit returns. Victoria Scholar, head of investment at Interactive Investor, emphasized the importance of the upcoming decision, hinting at a possible rate cut of 25 basis points in March or April, contingent on the latest economic data.
Last year, the average individual made only 15 trips to ATMs, withdrawing an average of £1,352, a 5% decrease from the previous year. In total, there were 832 million cash withdrawals by individuals aged 16 and above in 2025, representing a 9% decline compared to 2024. ATMs remain the primary source of cash withdrawals in the UK, surpassing cashback and counter transactions at financial institutions.
In more positive news, two fortunate Premium Bond holders in Liverpool and Bedfordshire each claimed a £1 million prize. The winning Bond numbers were announced by National Savings & Investments, with one winner hailing from Central Bedfordshire and the other from Liverpool. These winners are part of over 6.1 million Premium Bond prizes totaling £408 million drawn by ERNIE this month.
Nationwide Building Society reported a 0.3% recovery in the average house price last month following a dip in December, leading to a 1% annual increase in January, bringing the average house price to £270,873. Nationwide’s chief economist, Robert Gardner, expressed optimism for the housing market’s activity in the upcoming quarters, especially if the trend of improved affordability seen last year continues.
Gold and silver prices experienced a sharp decline from record highs in response to US President Donald Trump’s nomination for the next Federal Reserve chairman. Gold dropped by 7% to just over $4,500 per troy ounce, while silver fell by 13% to $74 in early trading on Monday. The sell-off was triggered by Trump’s selection of Kevin Warsh as the potential successor to current chairman Jerome Powell, easing investor concerns and boosting the US dollar at the expense of safe-haven assets like gold and silver.
Both precious metals had been on a record-breaking rally as investors sought safety amid global uncertainties, conflicts, and trade tensions.