Interest rates rise to 4.75 per cent
05/08/2004
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
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