Interest Rates Maintained

05 September 2008

The Bank of England has voted in favor of maintaining the current base rate of interest at five per cent for another month.

In news that may interest those seeking unsecured loans, the Bank's monetary policy committee (MPC) has made no changes to the current rate since April, when it was lowered by 0.25 percentage points.

Commenting on the news, David Kuo, head of personal finance at money website Fool.co.uk, said: "Whilst the central bank may want to respond to declining house prices, stuttering economic growth and more recently, weakness in the pound, it cannot afford to take its eye off the rising cost of living."

He added that the decision to stand firm had opened up more possible government tax giveaways.

Further comments that might be of interest to those looking for unsecured loans come from moneysupermarket.com, which said that the decision would mean "very little" to new borrowers.

This was because the MPC was "increasingly divorced" from the action of lenders.

Source: http://www.jstfinancial.co.uk