Bank keeps rates steady

The Bank of England's monetary policy committee (MPC) has announced that it is keeping the base rate on hold at 5.5 per cent this month.

Following last month's decision to trim the rate by 0.25 per cent, there had been speculation that there might be a second cut in successive months.

Those with variable rate and tracker mortgages hoping for a lowering of their payments were left waiting for at least another month, which may interest those considering whether the self build option may be a less costly way to establish a home.

Many economists are now predicting there will be a cut in rates next month.

Those commenting on the MPC decision today that have predicted such a move include Howard Archer of Global Insight, Nici Audhlam-Gardiner of Abbey Mortgages and Ian Kernohan of Royal London Asset Management, with the latter suggesting there may be a reduction by 0.5 per cent.


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