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Bank votes for rate hold at 5%

The Bank of England’s Monetary Policy Committee has voted to keep the Base Rate at 5 percent.

This decision comes as the Bank trys to curb spiralling inflation which currently stands at 3.8 percent, 1.8 percent above its target.

Hamptons International Mortgages managing director Jonathan Cornell says: “Another month and further stalling tactics from the MPC. Inflation crept ever higher in July, nearing closer to five percent by the year end, yet the MPC still remains undecided on the path it should take.

“Holding the base rate, while offering relief from a rate increase, will do little to ease borrowers’ pain. The average monthly mortgage repayment has been gradually increasing and with increases in energy and food costs in July, borrowers will have to stretch themselves even further this month.”

Connells Survey & Valuation managing director Ross Bowen says: “While a lower base rate would take some of the pressure off lenders, allowing them to lower their rates more – it’s not a surprise that the MPC decided to hold today.

“It’s far more important that the Bank of England and government work towards improving market liquidity, allowing more lenders to drop the rates they’re offering.”

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