Mortgage Industry News

← Back

Mortgage rates set to stay on hold

Date: 25 Jan 05

A cut in interest rates in the near future is highly unlikely, new data from the Bank of England has revealed.

Following the worst Christmas high street sales performance for 23 years and with house prices barely moving, some economists had been predicting that the bank's interest rate-setting Monetary Policy Committee might be considering lowering the cost of borrowing.

But the minutes from the latest meeting of the committee, released today, have poured cold water on these hopes.

According to the minutes the MPC voted unanimously to keep interest rates on hold at a three-year high of 4.75 per cent.

Additionally the minutes stated that "overall, the committee agreed that there had been relatively little news this month" that would make them either raise or lower interest rates.

The MPC has voted to keep interest rates on hold since August last year, after raising the cost of borrowing five times in quick succession.

© 1998-2005 DeHavilland Information Services plc. All rights reserved.

Endsleigh Insurance Services Limited is authorised and regulated by the Financial Services Authority. This can be checked on the FSA Register by visiting its web site at www.fsa.gov.uk/register.
Endsleigh Insurance Services Limited. Company No: 856706 registered in England at Shurdington Road, Cheltenham Spa, Gloucestershire GL51 4UE.