The Bank of England’s Monetary Policy Committee (MPC) has voted unanimously to maintain the bank rate at 0.5%.
The MPC also voted unanimously to maintain the stock of purchased assets financed by the issuance of central bank reserves – so-called ‘quantitative easing’ – at £375 billion.
Jeremy Duncombe, director of Legal & General Mortgage Club, said: “Today’s result reinforces earlier predictions that interest rates are likely to remain at record-low levels until next year. Whilst this is good news for many homeowners, it is vital that potential borrowers and those looking to remortgage do not get complacent about these rock-bottom rates.
“The temptation to delay looking at new mortgage deals should be ignored, as mortgage rates are not directly linked to base rates. Anyone who is thinking about re-mortgaging should therefore speak to a broker now to find out about the best product for their individual circumstances, before these deals disappear.”
Kevin Caley, chairman of peer-to-peer lender ThinCats, added: “The MPC won’t have lost sleep over today’s decision, which was in essence, a predetermined vote. Brexit and concerns over the UK’s economic health mean that rock bottom interest rates are here to stay.
“As far as savers are concerned, until the base rate overtakes the inflation rate they are still paying for the mistakes of the banks, meaning we are still to some extent in a financial crisis. Savers must rethink their savings plans and consider alternatives to make their money go a little further.”