The Bank of England’s Monetary Policy Committee (MPC) has today (July 6th) announced that interest rates will remain at 4.5 per cent for another month.
The rate-setting body’s decision, which freezes the base rate for the 11th month in a row, had been widely predicted by analysts, although many expect a rate rise before the end of the year.
Ray Boulger, a spokesman for independent mortgage advisor John Charcol, commented that any change in base rate would have been “a major shock”.
“The UK housing market is steady, although the modestly rising national figures mask some sharp regional fluctuations,” said Mr Boulger.
“The MPC will have factored in the probability of the year-year house price indices falling in the autumn as the strong growth seen in the last four months of 2005 falls out of the year-year figures,” he added.
Mr Boulger also said that next month’s quarterly inflation report would be the “key influence” on the Bank’s interest rate policy for the following three months.
As a result of economists’ predictions, large numbers of remortgagers are currently seeking out the best mortgage rate deals in order to borrow cheaply before interest rates are increased.
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