The Bank of England’s Monetary Policy Committee (MPC) has once again voted to maintain the Bank Rate at 0.25%.
At its meeting ending on 10 May 2017, the Committee voted by a majority of 7-1 to keep thee Bank Rate unchanged.
The MPC also voted unanimously to maintain the stock of UK government bond purchases, financed by the issuance of central bank reserves – so-called ‘quantitative easing’ – at £435 billion.
Jeremy Duncombe, director, Legal & General Mortgage Club, said: “Today’s decision by the Bank of England to once again maintain the interest rate at 0.25% was expected, particularly in the run up to a General Election. This benign position however is not mirrored in the mortgage market.
“While the interest rate remains the same, we are seeing huge amounts of activity from lenders in the mortgage market. Lower-rate deals have become available, new products are being launched and competition is getting more intense. With these recent developments in mind, it is more essential than ever for consumers to get in contact with a broker to ensure they are taking advantage of this unique opportunity that could see them save thousands of pounds on their mortgage deals.”
Kerim Derhalli, CEO and founder of Invstr, added: “No surprises here that Carney has opted not to rock the boat by keeping interest rates unchanged.
“Inflationary pressures and uncertainty around Brexit will persist and rushing into a decision now could be dangerous. The Bank of England’s verdict shows that they are mindful of the possibility of lower growth as companies put investment on hold in the face of this uncertainty.
“While there are cases for a rate hike driven by consumer price inflation, the pressures aren’t enough and it seems unlikely that we will see any changes until at least the end of 2018.”
