No rise for interest rates
October 4, 2007 by admin
Filed under News, News-Mortgages
The Bank of England has left the UK base rate untouched at 5.75 per cent.
Today’s announcement from the Monetary Policy Committee comes after five consecutive rises since August 2006, each of one quarter of a per cent.
“An interest rate cut was unlikely this month as there are, as yet, few signs of any serious damage to the real economy from the upheaval in the money markets,” said CBI chief economic adviser Ian McCafferty.
Homeowners who faced increased mortgage repayment costs and a recent fall in house price inflation are likley to welcome the news.
The rises in interest rates may have had a direct effect on house price inflation, which fell last month from 11.4 per cent in August to 10.7 per cent in September, according to the Halifax.
Martin Ellis, chief economist at the bank, commented: “September’s price fall is consistent with the normal behaviour of the market during a slowdown.”
