UK interest rates live: Bank of England holds rates at 4% amid inflation concerns

Morning all and welcome to our latest live blog across the business and finance worlds.

Today we’ll catch up on stock market matters, any further inflation reaction and the latest affecting workers at Jaguar Land Rover.

Our primary focus though is the 12 noon announcement from the Bank of England over interest rates.

Online giant Amazon has announced an above inflation pay rise for its employees.

From the end of the month the minimum starting pay will rise by 5.9% to £14.30-an-hour or by 5.5% to £15.30-an-hour depending on location.

Annual salaries for frontline employees will start at a minimum of £29,744 and up to £31,824 depending on location.

The increase will affect tens of thousands of staff across the UK, said Amazon, adding that its minimum starting pay will have risen by 43% since 2022.

Today’s big focus will be the Bank of England deciding on whether to cut interest rates or not. Here’s what you need to know:

When: At 12 noon we get their announcement

What: The nine MPC members vote to cut, hold or raise rates

Last time: In August rates were cut down to the current 4% level

This time: Experts predict no cut today – here’s the detail, reasons and what comes next.

Starbucks is facing a legal challenge from their own employees in the US, who say a new dress code came without reimbursements or garments.

A class action lawsuit is a possible route after the company switched up the dress code in an effort to create a “warmer” and more familiar brand.

One employee called the manner of the change “tone deaf” – more details here.

Lloyds, Natwest, Nationwide.

All three have launched cash switch offers in the past few days, which means they will give you money if you move your current account to them.

The amounts are slightly different and so too are additional perks you get – make sure if you’re considering a switch you choose the one which gives you the best overall deal for your needs, not just the most money up front.

• Lloyds – £200.
• Natwest – £175.
• Nationwide – £175.

Lloyds also give you an extra annual perk like Disney plus or a coffee shop discount; with Natwest you can add an extra £36 across the year with one account type; Nationwide will share profits with their members (customers), often £100 a year recently.

Others like first direct, Co-op Bank and more are also putting £175 plus other perks on the table including access to much higher interest rate savings accounts – that’s 7 per cent in the case of first direct!

Make sure you choose carefully and always read terms to ensure you’re eligible.

We’re expecting a vote to hold today from the BoE. That doesn’t transpire to consumers to do nothing themselves, however.

“With inflation staying stubbornly sticky, it’s unlikely that the Bank of England will be cutting rates today. But there are ways you can make sure your money is working for you, and not against you,” says Alastair Douglas, TotallyMoney CEO.

Here are his ways to make sure your money is in the right place…

“If you’ve not moved your savings recently, it’s likely your bank will be paying you a below-inflation rate, meaning your cash will effectively be losing value. By shifting your money to a market-leading account, you could start earning up to 4.75 per cent.”

“If your current deal is ending within the next six months, then it’s worth shopping around for a new offer sooner rather than later. If you don’t, then you’ll probably find yourself on your banks Standard Variable Rate – with the average currently at 7.5%. The average two-year fix is 4.75% – and while it’s likely to be more than you’re currently paying, your monthly payments will jump, but not as high. Some brokers will also let you lock in a new offer now, and then switch to a better deal if one becomes available before your one is up.”

“Interest rates might not be dropping as quickly as we expected, but competition is heating up. Six banks are currently offering up to 34 months interest free on balance transfers, meaning borrowers can press pause on interest payments until July 2028, saving more than £1,700. So, if you’re carrying debt, make sure that the information on your credit report is correct and up to date, check your latest offers, and start saving money.”

The union said thousands of workers in the JLR supply chain should have a furlough scheme similar to the one announced this week to support staff at bus manufacturer Alexander Dennis.

Staff have been told not to return to work while production lines are still affected.

Potentially one for somewhat older readers who have had more time to add to their savings, but along the same lines as the current account switch offers going around, Barclays has one for your cash ISA.

If you transfer to a Barclays cash ISA with a minimum of £25,000, from another ISA provider, you get between £100-£500 depending on your total pot.

Added to the fixed rates on offer of 3.7 per cent and 4.0 per cent depending on account type, Barclays say the cash bonus effectively lifts the rate to a market-competitive 4.5 per cent in a best-case scenario.

As always, check terms to see what you need to be eligible and that the fixed term deals suit your needs.