Interest rates kept on hold at 0.5%

Interest rates have once again been kept on hold at 0.5% by the Bank of England’s Monetary Policy Committee.

Richard Barker, mortgage manager at Norwich & Peterborough, says: “The decision to leave Base Rate unchanged at 0.50% for the 30th month in a row was widely expected across the market.

“Although the current Consumer Prices Index inflation figure remains well above the government’s target, the UK economy remains relatively fragile at present and any increase is now predicted to occur in 2012.

“Recent housing market data suggests that house prices fell slightly in August and affordability for first time buyers is stretched, further reinforcing the argument to keep rates on hold for longer.”