The Bank of England is expected to maintain current interest rates this week, disappointing many borrowers. Economic experts predict that the Monetary Policy Committee, consisting of nine members, will decide to keep the base rate unchanged at 3.75% due to a recent uptick in inflation.
The committee will reveal its verdict on Thursday at noon, with significant attention on the meeting minutes for insights into potential future rate adjustments. Inflation has climbed back up to 3.4%, marking its first increase since July 2025. The Bank anticipates inflation to approach 2% by the middle of the following year.
A decision to hold rates steady this month would present a setback for mortgage holders and others, while offering relief for savers who have experienced declines in deposit returns. Victoria Scholar, Interactive Investor’s head of investment, emphasized the importance of Thursday’s announcement, highlighting the possibility of a 25 basis points rate cut in March.
According to ATM network operator Link, the average individual made only 15 visits to cash machines in 2025. On average, people withdrew £1,352 from ATMs last year, reflecting a 5% decrease compared to the previous year. Overall, individuals aged 16 and above made 832 million cash withdrawals in 2025, which was approximately 9% lower than in 2024.
Premium Bond holders in Liverpool and Bedfordshire have each won a £1 million jackpot, as confirmed by National Savings & Investments. The winning Bond numbers are 489TB013219 and 040QJ919368, held by individuals from Central Bedfordshire and Liverpool, respectively. 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 average house prices last month following a decline in December. Annual price growth reached 1% in January, with the average house price standing at £270,873. Nationwide’s chief economist, Robert Gardner, expressed optimism for the housing market’s future activity, especially if the affordability trend witnessed in the previous year continues.
Gold and silver prices have sharply retreated from their peak levels in response to US President Donald Trump’s nomination for the new Federal Reserve chairman. Gold was down 7% at over $4,500 per troy ounce in early Monday trading, while silver plummeted 13% to $74. The sell-off ensued after Trump selected Kevin Warsh as the incoming chairman, easing investor concerns and leading to a decline in safe-haven assets like gold and silver.
Both gold and silver had seen a surge in prices due to global geopolitical uncertainties and trade issues. However, with improved investor sentiment following the Fed chair nomination, precious metal prices experienced significant drops recently.