08-06-2007
Interest rates remain static
The Bank of England's monetary policy committee (MPC) has today decided to keep interest rates on hold, it has emerged.
In line with expectations, the Bank's MPC voted to keep interest rates static at 5.5 per cent for at least another month.
"The Bank of England held rates at 5.5% today," said Barry Naisbitt, chief economist at Abbey.
"While financial markets are clearly expecting a further rate rise, particularly after the analysis in the Bank of England's Inflation Report last month, it was not really expected in June," he added.
Indeed, there is the expectation that interest rates will increase by a further 25 basis points before the end of 2007, which may impact upon mortgage interest rates.
In related news, the European Central Bank yesterday raised interest rates to four per cent, their highest level in almost six years.