Bank of England interest rates stay at 0.5%

Posted: 08 May 2009 10:44:45 GMT

The Bank of England interest rates stayed at 0.5 per cent yesterday - the second month in a row the base rate has been frozen.

Homeowners with tracker mortgages would have been awaiting the news, which is announced by the Bank's monetary policy committee (MPC) each month, to see if the cost of borrowing was going to rise.

Indeed, many observers and economic experts believe that the MPC will keep rates at the same level for the rest of the year, which may prompt property owners to consider their home loan options in the coming months.

Over the last few months, the Bank has taken it upon itself to issue a statement about the general economic situation alongside its monthly base rate announcement.

Yesterday, it suggested that the global banking and financial system remains "fragile", despite authorities taking measures to try and improve matters.

"In the United Kingdom, GDP fell sharply in the first quarter of 2009. But surveys at home and abroad show promising signs that the pace of decline has begun to moderate," it added.


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