The Bank of England’s interest rate has been held at 5.25%
For the third month in succession, the Bank of England monetary commission has decided to keep interest rates at their current level of 5.25%.
Whilst this is undoubtedly good news for homeowners, with household finances stretched and many people jiggling to afford the ‘extra’s’ of Christmas, the bank has also signalled that it maybe sometime before rates are reduced as they maintain their priority of keeping inflation under control.
The news of the inflation rate falling to 4.6% seems welcome news. However, this is still over twice the Bank of England’s target rate although well below the rate that looked, not so long ago, as if it would spiral into double figures.
Despite the Bank keeping rates on hold, some mortgage lenders are making moves with their own rates as they are confident the next move will be down. Many fixed rate mortgage products have had the rate reduced.