Base rate increase to 5.75%

www.moneynews.co.uk > General finance > Base rate increase to 5.75%

Base rate increase to 5.75%

Fri 6th Jul 2007

The Bank of England's monetary policy committee (MPC) voted to raise interest rates by a quarter point to 5.75 per cent yesterday in order to meet the government's two per cent inflationary target in the medium-term.

Following on from a base rate increase implemented by the Bank of England's monetary policy committee in May, the bank believes that while the consumer price index level was at 2.5 per cent in May, lower gas and electricity prices would mean that it might fall back into line later this year.

Nevertheless, consumer group Citizens Advice believes that yesterday's interest rate hike could mean that many homeowners struggle to meet their mortgage repayments.

A survey commissioned by the group last year indicated that some 770,000 people in Great Britain missed a mortgage payment in the last year, with younger property owners more likely to struggle with their finances.

People who are having difficulty repaying their mortgage are being encouraged to let their mortgage lender know straight away and not try to attempt to borrow their way out of debt.

Related News : General finance
	Citizens Advice welfare applauds government
	Confused.com energy defends British Gas
	Bank of Ireland passes stress test
	Tesco Mobile deal 'courts consumers'
	Scottish Widows Investment Partnership notes favourable response
	Customers should fix now, says moneysupermarket.com energy
	Confused.com highlights importance of getting the best deal
	Prices on the rise, says moneysupermarket.com energy
	Bank of Scotland economic report 'suggests transitional phase'
	Clydesdale and Yorkshire Banks security advice issued