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Bank of England maintains base rate at 0.75%

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  • 13/09/2018
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The Bank of England’s Monetary Policy Committee (MPC) has voted unanimously to maintain the base rate at 0.75%.

 

This follows the base rate rise to 0.75% in August, just the second time it has been hiked in a decade.

The committee also voted unanimously to maintain its quantitative easing policies at their current levels.

It repeated previous notices that will look to tighten monetary policy to return inflation to its 2% target.

However, the MPC warned that this policy could be influenced significantly by how households, businesses and financial markets respond to Brexit, particularly if it is not a smooth transition.

 

Borrowers continue to benefit from near-record low rates

Kevin Roberts, Legal & General Mortgage Club director, said that with a rise in the base rate last month, it is hardly surprising that the Bank of England decided to keep rates at their current level this month.

He added: “This will be welcomed by borrowers, who continue to benefit from near-record low rates and a mortgage market that is delivering a growing number of innovative solutions for customers.

“However, the low-interest rate era won’t last forever and customers coming to the end of their mortgage term would be prudent to consider locking into a new fixed rate now, to take advantage of some of the great deals that remain on the market.”

Bluestone Mortgages director of sales and marketing Steve Seal said that with the previous interest rate rise still fresh in consumers’ minds and living costs on the rise, many borrowers will be relieved by today’s decision to hold the base rate.

 

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