Interest rate stays at 5.75 per cent

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Interest rate stays at 5.75 per cent

Fri 3rd Aug 2007

The Bank of England has elected to maintain the base rate of interest at 5.75 per cent.

At yesterday's meeting of the monetary policy committee, members voted to keep the rate unchanged, having lifted it by 0.25 percentage points on July 5th.

Ray Boulger of independent mortgage adviser John Charcol said that the decision will be the first in many months to "bring cheer" to mortgage borrowers.

"[The] decision may well signify that rates have reached their peak and that the next movement in bank rate will be downward, albeit not until next year," he continued.

From a savings point of view, the Post Office warned account holders not to be "complacent" now that the rate has been held.

"A further base rate increase is expected this year, so savers must make sure they are with a provider that will pass on any increases," said Richard Norman, the Post Office's head of savings.

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