Base rate remains at 0.5%

The Bank of England's Monetary Policy Committee MPC has decided to keep the base rate at the historically low level of 0.5 per cent, which could be good news for those looking for cheap mortgages.

Andrew Goodwin, senior economic advisor to the Ernst & Young ITEM Club, had predicted earlier this week that the rates would remain the same.

In addition to his prediction about the result of the latest MPC meeting he added that he does not think that the base rate will increase in the near future.

He finished by stating that "we see rates on hold for several years yet".

Recently, 64 economy experts polled by Reuters predicted that the base rate is likely to remain at the low rate of 0.5 per cent until October next year at least.

The poll of leading economists found that base rates will end 2011 on just 0.75 per cent, which could be good news for consumers looking for the best mortgage rates.
 

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2010-12-09 13:25:45 © Moneyextra.com