Loan rates may stay put as base rate held

The base rate is to stay at 0.5 per cent, the Bank of England’s Monetary Policy Committee (MPC) has said.

It means that the record low level has stayed the same for eight months in a row, after last being cut in March.

According to the body, inflationary pressures are low enough for it not to need to make any changes.

A longer-term outlook may be established next week, when the Bank’s Quarterly Inflation Report is published on November 11th.

The one move the MPC did make was to extend its quantitative easing level from £175 billion to £200 billion.

With rates staying the same, there may be no increase in the costs of taking out personal loans.

One lender cutting its personal loan rates is M&S Money.

It has announced it is to trim these from 9.9 per cent to 8.7 per cent in response to a recent increase in borrowing from members of the public looking to take advantage of the vehicle scrappage scheme and get a new car.

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