MPC holds base rate at 5.25%

The last change in interest rates occurred on 11 January when the MPC unexpectedly decided to raise it by 0.25%, catching many in the industry off-guard as a rise in the base rate was not expected so close to the previous increase in November 2006. Stephen Leonard, director of mortgages at Alliance & Leicester, says over recent weeks there has been growing consensus in the market that the base rate would not rise beyond its current level in March, and today's announcement reinforces this sentiment. But he warns while this decision will come as a relief to borrowers, “we are not out of...