Interest rate stays at 4.5% in July

The Bank of England's Monetary Policy Committee (MPC) has today voted to keep the base rate at 4.5%. The move (or lack of it) was widely expected by analysts.

However, it is generally expected that rates may rise before the end of 2006. Rising inflation has led people to believe the MPC will decide to increase the base rate in the coming months in order to keep inflation in check.

This has been reflected in rises in fixed rate mortgage deals already, with many rising by up to 0.5% in the last few months.

This entry was posted on Thursday, July 6th, 2006 at 11:59 am and is filed under Main, Mortgages, Interest Rates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.