The Bank of England’s Monetary Policy Committee (MPC) has voted unanimously to maintain the Bank Rate at 0.75%.
This follows the 0.25 percentage point rise last month.
Kevin Roberts, director of Legal & General Mortgage Club, said: “With a rise in the base rate last month, it’s hardly surprising that the Bank of England has decided keep rates at their current level this month. 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. Speaking to an adviser can be an excellent place to start, providing extensive product choice and the professional advice to help borrowers find a mortgage that suits their needs.”
Tom Stevenson, investment director for Personal Investing at Fidelity International, added: “No surprises. Despite stronger than expected GDP growth and wage growth edging higher than price rises again, the Bank of England held fire today. The vote to leave rates unchanged at 0.75% was unanimous.
“While this latest wave of economic data vindicates the decision to hike rates last month, any further tightening from here is likely to remain at a ‘gradual pace and to a limited extent’. The Bank of England will not want to unsettle the UK’s delicate recovery with an ill-timed rate hike. The Bank is right to worry about a messy divorce from the EU and it is also flagging up the threat from rising trade tensions. The extension of Mark Carney’s tenure as governor shows the need to have a grown-up in charge. He may well be called on to demonstrate a firm hand on the tiller in the difficult period ahead.”
