8
May
Bank of England holds interest rates
Mortgage rates are set to remain at the same level following the
Bank of England's decision to hold interest rates at five per cent
this month.
Analysts had predicted such an outcome, with all nine of the
experts polled by Adfero last week and 60 out of the 65 economists
polled by Reuters forecasting that the Bank would hold rates.
If the current pattern of bi-monthly rate cuts is continued, the
Bank's monetary policy committee should reduce interest rates by a
quarter point in June, which borrowers will be hoping get passed on
to them.
According to the Council of Mortgage Lenders (CML), 90 per cent of
cuts between August 2007 and March 2008 were passed on.
The CML has expressed its disappointment that the Bank did not
lower interest rates this month, although it did acknowledge that
it faces difficult balancing act between a slowing economy and
rising inflation.
