Thisismoney.co.uk - Interest rates held at 4.5%: What it means for your mortgage and savings
The Bank of England has held inerest rates at 4.5 per cent as it continues to tread carefully amid fears of resurgent inflation. The decision came as little surprise to financial markets, with a pause wide predicted by analysts. Eight members of the Monetary Policy Committee voted to pause, and one for a cut.
Aaron Strutt of Trinity Financial told Thisismoney.co.uk: 'The MPC is holding off making a decision to cut borrowing costs because inflation is above the target amount.
'Mortgage rates have been coming down recently, so there is still a good choice of fixed rates priced around 4.25 per cent for borrowers with a range of deposit sizes - which is below the current base rate.
'It seems likely that the base rate will come down a couple of times this year, but as we know, the money markets can change quickly so there are no guarantees.
'While most borrowers are taking two-year fixes, opting for a three- or five-year fix isn’t such a bad idea. Payment security is really important in these challenging economic times.'
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