11
Jun
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.
