22
Apr
MPC unanimous for hold
The Bank of England's Monetary Policy Committee (MPC) voted
unanimously to hold the base rate at 0.5 per cent, it was revealed
today.
Minutes of this month's meeting indicated that all nine members
supported the decision, agreeing that the recent rise in consumer
prices index (CPI) inflation to 3.2 per cent was just a hiatus in a
downward trend that could see inflation dip below two per cent
later this year.
That view has been supported by the subsequent news yesterday that
the CPI rate had fallen again to 2.9 per cent.
A continued policy of maintaining a record low base rate may help
keep mortgage rates down, but evidence has emerged that the
likelihood that the next change - whenever it happens - will be
upwards, is influencing those taking out mortgages to opt for
fixed-rate deals.
Figures from mortgage broker John Charcol have revealed that 80.9
per cent of applications in March were for fixed-rate products,
compared with 67.4 per cent in February and 29.1 per cent in
December 2008.
