Banking News MPC In A Difficult Position As Bank Rate Remains At 5 2180

MPC “in a difficult position” as Bank Rate remains at 5%

04 September 2008 / by Rebecca Sargent’s director, James Caldwell comments on the MPC’s decision to keep the Bank Rate at 5 per cent.

“The MPC are in a difficult position of managing inflationary pressure on one hand, and on the other an economy that is in decline. By sitting on the fence it is probably hoping recent initiatives by the Government to kick start the housing market through tax cut incentives will help first time buyers come back into the market.

“For existing homeowners who are struggling with mortgage repayments, the news will bring little comfort.”

Written by Editorial Team