The Bank of England is expected to maintain current interest rates this week, disappointing many borrowers. Analysts predict that the nine-member Monetary Policy Committee will opt to keep the base rate steady at 3.75% due to a recent uptick in inflation.
The committee will reveal its decision on Thursday at noon, with particular attention on the meeting minutes for hints about potential future rate cuts. Inflation has climbed back up to 3.4%, the first increase since July 2025. The Bank anticipates inflation to approach 2% by the middle of the next year.
A decision to hold rates this month would be unfavorable for mortgage holders and others, but it would benefit savers who have experienced a decline in deposit rates. Victoria Scholar, head of investment at Interactive Investor, stated that investors will focus on any indications regarding a possible 25 basis points rate cut in March.
According to ATM network operator Link, the average person only visited cash machines 15 times last year and withdrew an average of £1,352, a 5% decrease from the previous year. In 2025, individuals over 16 years old made a total of 832 million cash withdrawals, a 9% decline from 2024.
Two fortunate Premium Bond holders from Liverpool and Bedfordshire have each won a £1 million jackpot, confirmed by National Savings & Investments. The winners hold the maximum £50,000 per person in Premium Bonds and were among the 6.1 million prizes totaling £408 million drawn this month.
Nationwide Building Society reported a 0.3% recovery in the average house price last month following a decline in December. Prices rose by 1% annually in January, reaching an average of £270,873. Nationwide’s chief economist, Robert Gardner, expects housing market activity to improve in the upcoming quarters, especially if the affordability trend seen last year continues.
The prices of gold and silver have sharply decreased from record highs following US President Donald Trump’s nomination for the next Federal Reserve chairman. Gold dropped 7% to over $4,500 per troy ounce, while silver fell 13% to $74 in early Monday trading due to Trump’s selection of Kevin Warsh as the new chairman. This decision calmed investor concerns, boosting the US dollar but causing a decline in the demand for safe-haven assets like gold and silver.
Both gold and silver had experienced significant gains amid global uncertainties, conflicts, and tariff disputes before the recent sell-off.
