Base rate stays at 0.5% for 2years |
The Bank of England has recently voted to keep the base rate at 0.5% – despite the fact that inflation is currently at double the target rate. This brings the 0.5% run to 2 years, although last month’s votes (three members voted to increase the rate) lead many commentators to predict that this month might be the month of the first rise.
Although the low rate is good for mortgage holders, it does mean that inflation is quite high. Mortgage rates are also still high compared to the base rate, with fixed rates under 5% only available to those with a sizeable deposit available.
