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My interest rate has just been cut why does this happen?

The interest rates on savings tend to move in line with interest rates in the economy as a whole. So, if the Bank of England cuts its base rate, the interest rate on your savings will probably fall, too.

But sometimes banks and building societies cut rates by much more than the fall in the base rate or cut their rates when the base rate has not changed at all. This is because they also set interest rates on particular accounts to attract customers and cut them once they have enough customers.