Interest rate held at 5.75 per cent

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Interest rate held at 5.75 per cent

Thu 6th Sep 2007

The Bank of England today decided to maintain the base rate of interest at 5.75 per cent.

The Bank's monetary policy committee decided to keep the rate unchanged amid expectancy that the consumer price index of inflation will remain around two per cent.

With this expected percentage being in line with the government's target, it was deemed unnecessary to increase the rate any further.

Commenting on the decision, Stephen Leonard, director of mortgages at Alliance & Leicester, called it a "welcome relief" for borrowers.

"For borrowers needing financial security and the ability to budget for their outgoings, a fixed rate mortgage will prove invaluable," he said.

"However, for borrowers who are financially flexible, tracker mortgages can still offer good value."

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