Interest rates held at 5%
Published On 7 December 2006
The Bank of England's monetary policy committee (MPC) has voted to peg interest rates at five per cent this month.Following two rate rises in the past four months, the decision to keep interest rates at the same level was widely anticipated by analysts.
November saw interest rates increase a quarter point to five per cent – the highest level the economy has seen for five years. Recently released minutes from the MPC's November meeting showed that two of the committee's nine members voted against the rise.
Ray Boulger, John Charcol spokesman, said: "An unchanged bank rate today was a foregone conclusion and it currently looks as if next month's meeting will produce the same result.
"For those borrowers who don't need the interest rate security provided by a fixed rate, mortgage trackers continue to look attractive and a tracker with a droplock option provides an added benefit for borrowers who would consider a fixed rate if their rates fall."
Consumer price inflation held steady at 2.4 per cent, which is slightly above the UK target of two per cent.
