Interest Rates Kept at 5% mark
The Bank of England had its monthly meeting yesterday and announced at midday that after evaluating the current financial economy, they were going to keep the base interest rate at 5%.
Last month the decided to reduce interest rates to 5% because of an increase in inflation and various other economic issues.
It is homeowners that seem to be suffering the most with our current financial market. Repossessions of homes are up by 17%. Last month when interest rates were cut it was hoped most lenders would pass this onto their mortgage customers, unfortunately this wasn't the case and as such more and more people are struggling to keep up with their monthly repayments.
Current inflation remains at 2.5%. The aim is to keep it at, or as close to 2% as possible and the BOE committee felt by keeping the interest rates at a steady 5% would help achieve this goal. The next meeting will decide what happens next on 5th June 2008, but there are predictions that it will be cut by 0.25% to 4.75%.
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