Interest rates held for another month
The Monetary Policy Committee (MPC) yesterday announced that interest rates would be held at 0.5 per cent for another month. This means that interest rates have been held at this level for an incredible 25 months in a row.
However, rates are likely to rise sooner rather than later, with many economists expecting an increase before the summer is over. With inflation continuing to rise, the MPC is under great pressure to hike rates to keep it in check.
Borrowers need not panic, however. A number of lenders have reduced their fixed and tracker rates this month, as money market rates continue to rise – but at a slower rate than in recent months. This means there are some good options for those looking to buy or remortgage, particularly those with large deposits or significant equity in their homes.