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Interest rates rise to 4.75 per cent

05 August 2004
The Bank of England's Monetary Policy Committee has raised the base rate of interest to 4.75 per cent.

The quarter point rise - the third in four months - was in line with the projections of most analysts.

In June the MPC raised the rate from 4.25 per cent to 4.5 per cent in a bid to take some of the heat out of the UK's booming property market and dampen inflation.

Today's decision comes against a backdrop of robust manufacturing performance and record consumer borrowing, which recently passed the £1 trillion mark.

Some pundits had expected the MPC to break precedent and raise rates by a half a percentage point to give homebuyers a jolt.

The Halifax, the UK's largest mortgage lender, said yesterday it had discerned a slowing rate of month-on-month increases in the property market.

According to the mortgage lender the average cost of a home now stands at £161,831.
DeHavilland Information Services plc