11 Jun

MPC freezes interest rates, as expected

MPC freezes interest rates, as expected

Homeowners will find the cost of borrowing will stay the same in June after the Bank of England's monetary policy committee (MPC) held interest rates at 0.5 per cent yesterday.

It is the third month in succession that the base rate has been frozen since the committee brought it down to its current record low level in March.

UK economist at Capital Economics, Vicky Redwood, is one of the many financial experts who think there will be no change in rates for the foreseeable future.

She said earlier this week that there is not likely to be any variation in the interest rate in the next 12 months and it could possibly stay at 0.5 per cent for the next year and a half.

Meanwhile, marketing director at property website fish4homes Lisa Walker said last week that the current low cost of borrowing has had a positive effect on the housing industry.

Ms Walker suggested that, unlike the 1990s when interest rates were in excess of 12 per cent, most people are not being forced into selling their homes.

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