Bank of England maintain base rate at 5%

The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 5.0%.

TBPL View:
Don’t expect any discounted mortgages this month, the MPC has to balance the effect on inflation with stimulating the stagnating housing market and in this instance they’ve acted cautiously by maintaining rates at 5%.

We’ll only find out what they were thinking when the minutes are released but they will be worried that by dropping rates they will stimulate inflation – expect a rate cut before the end of the year though.

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