8 May

CML director 'disappointed' at interest rate decision

CML director 'disappointed' at interest rate decision

The director general of the Council of Mortgage Lenders (CML) has expressed his disappointment at the Bank of England's decision to hold mortgage rates at five per cent today.

Michael Coogan said he understood the difficult balancing act the Bank has between rising inflation and slowing economic growth.

However, he stated that the monetary policy committee "had an opportunity to act to anticipate the worsening economic environment today and it is disappointing that there has been no change".

Mr Coogan suggested that the mortgage and housing market is likely to remain unstable and "challenging" for the rest of 2008, but noted that most people are dealing with the problem effectively.

For anyone that is facing financial difficulty, he recommended that they contact their lender or a debt advisor as soon as possible.

Analysts polled by Reuters and Adfero had predicted that the Bank would hold rates this month if recent trends continue, there should be a quarter point cut next month.

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