Changes to loans rates unlikely

The Bank of England’s (BoE) Monetary Policy Committee (MPC) agreed to maintain interest rates at the current rate of 4.5 per cent yesterday.

The news, following the BoE’s monthly meeting, means that loans customers are unlikely to benefit from any further decreases in interest rates.

Last month, the majority of loans providers lowered their interest rates in line with the BoE, which dropped the baseline rate from 4.75 per cent.

Duncan Pownall, of Bradford & Bingley, said: “While many continue to cry out for another rate cut to revitalise certain sectors of the UK economy, most notably the subdued high street, it is likely that, for the time being, their pleas will fall on deaf ears.

“Currently there is a wide range of opinion on the prospects for interest rates, reflected in the rare division within the MPC, but we believe it is likely that base rate will remain on hold for the rest of the year unless there is a dramatic downturn in housing and retail sales.”

© Adfero Ltd

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