Subscribe to The Money StopNews Feed

Browse > Home / News, News-Loans / Bank was split over rate rise

Bank was split over rate rise

February 22, 2007 by admin  
Filed under News, News-Loans

Leave a Comment

The recent freezing of caused a split within the Bank of England, with two Monetary Policy Committee (MPC) members voting in favour of a rise.

Minutes of the meeting in February have revealed that the vote was split 7-2 in favour of freezing rates but the divide means that the future for borrowers remains uncertain.

Those with a mortgage, credit card or loan could still see interest rates rise, with many people likely to suffer as a result if they do not have the financial clout to withstand another increase.

MPC members decided to wait and see what effect the previous three rate rises would have before moving ahead with another.

“It would take some time for the full effects of the past tightening to be seen. It was difficult to judge whether, and if so by how much, policy might need to be further tightened to keep inflation on track to meet the target,” the minutes read.

The previous rises came in quick succession, with rates jumping from 4.5 per cent in August to 5.25 per cent in January.

It appears that interest rates are likely to rise again in the coming months as the MPC attempts to bring down inflation which is currently running well above the government’s target of two per cent.

Tags: RPIX, Consumer Price Index, rates, succession, interest rates, interest, target

Tags:

Related Entries

  • Split decision on rates at last MPC meeting
    • According to the recently released minutes from the last Monetary Policy Committee meeting held in early August there was a split vote with regards to interest rate movement. However, despite this many officials now believe
  • Interest rates remain 5.25%
    • The Bank of England has decided to hold interest rates at 5.25 per cent.It is good news for those with a mortgage, loan or credit card and will be welcomed by the majority of borrowers.Many
  • Three way split on interest rates for July
    • The minutes of the latest Monetary Policy Committee meeting, which was held earlier this month, has shown that there was a three way split on interest rate movement for the month of July, indicating that
  • Prepared for a split?
    • It may be Valentine's Day but nobody seems to have told the people at Alliance & Leicester.The bank has today (February 14th) issued a warning to couples up and down the country, telling them not
  • Further controversy over banks’ failure to apply interest rate rise to savers
    • Once again many banks in the UK are coming under fire as a result of leaving savers hanging on to find out if and how they will benefit from the latest interest rate rise, which
  • Are you planning to remortgage?
    • Over recent months many people with mortgages have decided to remortgage for one reason or another. Some have come off special deals that were valid for a limited time and have been forced to remortgage
  • Surprise interest rate rise
    • The Bank of England has stunned economists by raising the interest rate to its highest level for six years.In the build up to the decision being announced, it was considered by almost everyone in the
  • Savings rate war sparked by interest rate rise
    • Last week's rise in interest rates to 5.75 per cent has caused consternation among both mortgage holders and first time house buyers. However, savings accounts have also been made potentially more lucrative from the rise,

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!