The Bank of England's Monetary Policy Committee (MPC) has voted to keep the UK base interest rates on hold at 4.5% for the tenth month in a row.
There has been no interest rate cut since August 2005 – when it was cut by 0.25% - and it is anticipated any future move could see the interest rate increase as a result of economic and inflationary pressures.
Most commentators expect a base rate rise in the Autumn. Recently energy and commodity prices have been viewed as creating inflationary pressure while the lack of domestically generated inflation has also been a concern. Uncertainty about these markets is bound to have been a major consideration during the meeting, as undoubtedly will be revised predictions yesterday from the Council of Mortgage Lenders that house prices will increase by 7% this year. However the committee appears to be maintaining a wait and see appraoch to the economy particulalry in light of the fact that inflation is currently at the Bank's target of 2%.
At the last MPC meeting at the beginning of May six members voted to keep rates as they were while one member voted for a rise of 0.25% in rates and another voted for a decrease of 0.25%
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