MPC Maintains Interest Rates

The base rate was left unchanged, it has been announced.

At its monthly meeting, the Bank of England's Monetary Policy Committee has chosen (MPC) to keep interest rates at five percent. The announcement means that it has for the third time the committee decided to follow the law of conservation of this year and parts of 0.25 percentage points in both April and February have been actioned.

Following the decision of the MPC, it is possible that consumers in finding and implementingCharges which are not under its finances deteriorate. And during the current period of economic uncertainty may find that homeowners keep their monthly mortgage repayments the same. In addition, people may discover that their ability to other claims - such as credit and store cards, personal loans and utility bills is successful - which is not under extra pressure.

Commenting on the decision today, "said Henk Potts, equity strategist for Barclays Stockbrokers," TheMonetary Policy Committee is a slow growth between rock and a hard place high inflation caught. UK economic growth is clearly moderation, consensus forecasts for growth of only 1.6 percent this year compared to three percent expansion in 2007. However, outside of the housing market and survey data, there is little concrete evidence of a significant slowdown in aggregate demand in the UK. "

He added that inflation remains on the "high level" for much of the rest2008 while the consumer price index inflation is expected to move above the current rate of 2.4 percent. Mr. Potts is this increase in the second direction of rising energy prices and continued depreciation of the pound sterling. However, he pointed out that the Bank of England is to carry out a series of drops to the base rate, are expected to 4.25 percent by the end of this year.

Meanwhile, Michael Coogan, director general at the Council of MortgageLenders (CML) that were submitted that although the MPC was required to make a balance between slowing economic growth and rising inflationary pressures in their decision that it was "disappointing" that a chance to cut the base rate, was not accepted. He went on to report that although the housing and mortgage markets, the market challenges in the rest of the year 2008, and most homeowners seem to be "along well."

However, Mr Coogan advised consumers who experienceDifficulty managing their money or fear that they soon problems in contact with their loan lender, or can develop a debt advice as soon as possible.

For people far beyond their capacity to manage their money than in 2008 could be over now the ideal time to complete a personal loan. By choosing this type of loan it is possible that the borrower will be able to supplement their spending effectively and make larger purchases.

Indeed, an examinationCML last month noted that a growing number of homeowners looking for mortgage products that monitor all changes to the base rate of interest. In February, about 35 percent of consumers were shown to take out tracker mortgages, an increase of 14 percent in the same month in 2007.