Interest rates remain at 5.75%

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by Elaine Frei

The Bank of England’s Monetary Policy Committee kept the base rate at 5.75% yesterday and the Bank is due to release its latest inflation report on 8th August.

Statistics from both Nationwide and Hometrack released show that house price inflation stood at 0.1% for July, although data issued by Halifax puts the figure at 0.7%.

A spokesperson for the Royal Institution of Chartered Surveyors commented that reflecting both this and the mixed signals now coming from the high street, it is hardly a surprise that the Monetary Policy Committee chose to sit on its hands this week.

However, borrowers must still be cautious despite the decision to hold the Base Rate at 5.75%. This will come as a relief to many who are struggling to make repayments but it is believed to be a temporary reprieve.