Bank freezes interest rate again

Posted: 10 Sep 2009 14:37:02 GMT

As expected, Bank of England interest rates were kept at 0.5 per cent this afternoon.

There have now been six consecutive base rate freezes by the Bank's monetary policy committee (MPC) and the cost of borrowing remains at a record low level.

Ray Boulger from UK mortgage broker John Charcol said that property owners and others who are affected by the base rate should expect to see it stay at the same percentage for a while yet.

"It seems probable that bank rate will remain at 0.5 per cent until well into next year and that any policy changes announced by the MPC will focus on its [quantative easing] programme or involve some other radical new policy," he explained.

The rate decision comes on the same day Halifax reported that property prices increased in August.

According to the bank's house price index, the average cost of a home in the UK last month was £160,973.

It stated that this was a 0.8 per cent increase on figures recorded in July.


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