Bank of England freezes rates at 5.75%

Analysts widely expected the MPC to keep rates stable as it assesses the full impact of recent market turmoil, which has seen several lenders withdraw products and an emergency loan given to Northern Rock. Some analysts have called on the Bank to cut rates to help prevent an economic slowdown and to aid homeowners, many of which will face ‘payment shock’ when their fixed rate deals expire over the next few months. Last month, the committee voted unanimously to keep rates at 5.75% prior to the Northern Rock crisis. Inflation has fallen within the Treasury’s target of 2%, currently at 1...