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News: Interest rates held for 11th consecutive month

Mortgaged homeowners received a further period of respite today as the Bank of England’s Monetary Policy Committee held interest rates steady at 4.5% for another month today.

It was the 11th consecutive month the MPC had voted for no-change in the cost of borrowing.

The freeze on rates for this month was widely predicted by analysts although there are widely differing views between analysts about the timing and even the direction of the next move. Experts polled by Reuters last week predicted a range of ‘next move’ scenarios varying from upwards in August to a cut in November with some even expecting no change until 2008.

The MPC is currently two members short, with only seven debating interest rates, following the departure of Richard Lambert to the CBI and the sudden death of David Walton last month.

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