Base rate maintained at current level

The Bank of England has decided against raising the interest rate from its current level of 5.25 per cent.

In January, the Bank’s monetary policy committee voted for a quarter per cent rise in the interest rate, surprising analysts across the board.

Minutes taken at last month’s meeting of the MPC showed that committee members were not unanimous in the decision, with four of the nine members voting against the rise.

However, some economists are already claiming a rate rise is almost inevitable in March or April.

Responding to today’s decision, the centre for economics and business research’s Jaspreet Sehmi said: “Although inflation is expected to fall back in the coming months as the impact of last year’s growth in energy prices diminishes, we expect that rates will move up to 5.5 per cent in March.”

Today’s announcement could be welcome news for those searching for the best mortgage rate or homeowner loan as they have more time to search for a fixed rate product before any further rises.

© Adfero Ltd

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