Stable interest rates could please mortgage holders

 

STABLE INTEREST RATES COULD PLEASE MORTGAGE HOLDERS
Article date: 05/10/2005 : 15:21:44

Analysts are predicting the Bank of England will once again leave UK interest rates steady.

If their predictions are borne out October will be the second month running with interest rates constant at 4.5 per cent.

Variable rate mortgage holders will be among the people hoping the analysts are proven correct, as no change in interest rates will signify constant repayments.

However while the BBC reports analysts are generally united about the outcome of the two-day meeting of the Monetary Policy Committee ending tomorrow, there is no consensus over the bank's next move.

"It seems a nailed-on certainty that the Bank of England will hold interest rates steady on Thursday," explained Howard Archer, economist at Global Insight.

"What happens after the October meeting is far from clear."

Falling consumer confidence and a downturn in the nation's high streets have led some experts to predict a cut next month. On the other hand some forecasters suggest rates may remain unchanged until 2006.
 
 
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