The nine members of the Monetary Policy Committee have voted unanimously to maintain the base rate at 0.75 per cent.
The meeting minutes reveal that the committee believes that, “there have been indications, most prominently in financial markets, of greater uncertainty about future developments in the [EU] withdrawal process,” before adding that, “any future increases in bank rate are likely to be at a gradual pace and to a limited extent.”
In early August the rate was raised from 0.5 per cent to its current level – the highest it’s been since March 2009.
L&C Mortgages mortgage expert David Hollingworth comments: “There’s no surprise in the Bank of England electing to hold interest rates this month, and mortgage borrowers will still be working through what the last rate rise means for them. Most lenders have now shown their hand on standard variable rates and in the majority of cases have reflected the full base rate increase.”
Legal & General Mortgage Club director Kevin Roberts says: “With a rise in the base rate last month, it’s hardly surprising that the Bank of England has decided keep rates at their current level this month. This will be welcomed by borrowers, who continue to benefit from near-record low rates and a mortgage market that is delivering a growing number of innovative solutions for customers.”
Finder.com chief executive Jon Ostler adds: “Consumers should be more focused on the fact they are still not seeing the interest rate on their savings increase in-line with August’s interest rise.
“Banks and lenders had no difficulties passing on the interest rises to their mortgage customers so it’s hard to comprehend why they couldn’t do the same for those who have savings with them.”