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Interest rate held

08 September 2006
The Bank of England's (BoE) Monetary Policy Committee (MPC) has decided to maintain interest rates in September following last month's rise.

The MPC, a board of advisors from several institutions that votes on any changes to the base rate, has decided that keeping rates at 4.75 per cent is in the economy's best interests.

Consumers are still trying to come to terms with the upped rates of last month, as the effect would only be felt 'on the ground' when mortgage lenders increased their own variable rates in line with the BoE.

Inflationary pressures continue to dog the UK economy and although analysts in a recent Reuters poll unanimously predicted today's decision, the future of the base rate for the next few months remains unclear.

Rising rates are typically bad news for mortgage borrowers, whose monthly outgoing repayments of debts will increase on variable rate and tracker loans.

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