News: Mortgage payers get a further hold in rates

Borrowers hoping for a second month’s reprieve from interest rate hikes will be relieved to know that the Bank of England’s Monetary Policy Committee today voted to keep the bank rate on hold at 5.25%

Last month the MPC members voted 7-2 to keep rates on hold but there were signs in the minutes that it was just a waiting manoeuvre. This month may have been a similar situation as the inflation figures for February will not be published until later in the month.

In addition, the Consumer Prices Index saw its sharpest drop since January 2003 when it fell from 3% in December to 2.7% in January, further lessening the urgency of an immediate rate rise.

Nevertheless, strong economic growth and a resilient housing market give economists cause to predict a further rate rise soon probably in May.

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