Kevin Brown, savings expert at Scottish Friendly, comments on this mornings interest rate decision

“By holding rates today, the Bank of England is betting that the shock to energy markets will be temporary and won’t cause a broader, more persistent price spiral of the sort we witnessed in 2022.

“Whether that’s the case or not remains to be seen. But regardless, many households are already struggling. Scottish Friendly’s Family Finance Tracker research found 55 per cent of people say prices are still noticeably rising every time they shop, highlighting just how persistent cost pressures remain for many.

“The Bank is operating on a knife-edge. Hold rates for too long and the risk is that inflation runs away like it did following the pandemic. But move too soon and rate-setters risk squeezing family finances in an already stuttering economy.

“For households, while savings rates remain relatively attractive for now, rising inflation means the real value of cash savings can still be eroded. Therefore, strengthening financial resilience by reducing debt, building savings or considering longer-term investments, could be considered viable options.”