How often does the base rate change?
A committee meets on the first Thursday of every month to reassess and decide if a change in the base rate is needed. The base rate is there is to keep things in check and it changes as and when the Bank of England feels it’s right to do so.
As you might have heard in the news, the base rate has increased to 0.50%. While this is nowhere near its highest-ever rate (a whopping 17% in 1979), it’s an upwards move that could be good news for any balances in your current account (as the interest rate paid on these could increase). However, the opposite is true if you’re in your overdraft, as the interest rate charged on this could increase, thereby costing you more.