No change in base rate, says MPC

May’s Bank of England monetary policy committee (MPC) meeting has resulted in no change to the base rate, it has been revealed.

After cutting by a quarter-point last month, the MPC has announced it is maintaining the five per cent rate base rate.

Michael Coogan, director general of the Council of Mortgage Lenders, said the decision is “disappointing”.

“We understand the conflict between slowing economic growth and rising inflationary pressure,” he remarked. “However, the MPC had an opportunity to act to anticipate the worsening economic environment today.”

Mr Coogan added that conditions in the housing market and mortgage industry will remain “challenging” during 2008.

Although many borrowers are managing to cope with the added financial pressures, anyone who is struggling or can foresee problems in the future should seek help, he said.

Tackling a financial concern early on is the best way of tackling debt, he advised, as there are more options available.

© Adfero Ltd

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