Base rate hold 'keeps tracker mortgage rates low'

Homeowners on tracker deals should remain on cheap mortgage deals for at least another month after the Bank of England chose to freeze interest rates once again.

The Bank's Monetary Policy Committee held the base rate at 0.5 per cent for the 12th consecutive month, ensuring that tracker deals remain at their current low levels.

At its March monthly meeting, the committee also chose to keep its £200 billion quantitative easing programme on hold after halting it in February.

Both moves had been widely expected by economists, in light of the Bank's attempts to stimulate a sustained economic recovery in the UK.

Howard Archer of IHS Global Insight, which specialises in economic and financial analysis, commented: "Any interest rate hikes are clearly off the agenda in at least the near term, and could very well be delayed until 2011."

The most recent change in interest rates was a 0.5 percentage point fall in March 2009.

Moneyextra.com recommends you take independent financial advice before acting on any article

Back

2010-03-08 12:47:57 © Moneyextra.com