Bank of England holds base interest rate

 

BANK OF ENGLAND HOLDS BASE INTEREST RATE
Article date: 08/09/2005 : 15:51:11

The Bank of England announced today that interest rates will be held at 4.5 per cent.

The move comes as no real surprise to most analysts, who had been predicting that the base rate would be held following a quarter point cut in August.

However uncertainty remains over the decision for next month, with a poll by Reuters showing that only 17 analysts believe the rate will be held again, compared with the 47 analysts who predicted today's hold.

Today's decision has been welcomed by finance providers.

Mehrdad Yousefi, head of intermediary mortgages at Alliance & Leicester, said that the decision came as "no surprise" and argued in favour of holding the current rate as it is, on the grounds it would encourage more activity in the market.

Meanwhile Duncan Pownall, mortgage development manager for Bradford & Bingley, seemed to be more supportive of another rate cut, referring to the "subdued high street" which another rate cut could revitalise.

However he added that the base rate was likely to remain on hold for the rest of the year, with pleas for a cut to "fall on deaf ears".
 
 
RELATED ARTICLES
  • New re-mortgaging offer from Yorkshire Building Society
    Yorkshire Building Society (YBS) has launched a two-year mortgage specifically for people who are changing their mortgage but not moving house.
  • Nationwide lowers its mortgage reservation fees
    In an effort to encourage people to have longer-term secure mortgage payments, Nationwide Building Society is lowering its reservation fees.
  • Cahoot sets up mortgage trial
    Internet bank cahoot has announced that it is offering a set of mortgages, only available by telephone, in association with parent company Abbey.
  • New Shariah-compliant mortgage for landlords
    The mortgage market has developing increased variety with the launch of a new buy to let product for Muslim consumers.
  • Mortgage growth encouraged by foreign properties
    The growing appeal of a holiday retreat overseas is helping to boost the foreign mortgage market, according to a new survey.
  • Mortgage growth encouraged by foreign properties
    The growing appeal of a holiday retreat overseas is helping to boost the foreign mortgage market, according to a new survey.
  • First sterling mortgage based on Swiss Franc interest rates launched
    A new mortgage, based on three-month Swiss Franc Libor interest rates, has been developed by independent mortgage experts John Charcoal.
    		•