Interest rates held at 5%

The MPC has shown concern about rising inflation in recent months, but believes the slowdown in the UK economy will eventually dampen inflationary pressures. The news is unlikely to be welcomed by homeowners, many of whom are facing higher mortgage repayments. However, a recent fall in SWAP rates has caused many mortgage lenders to reduce rates. The MPC has made tackling inflation, which hit 3.8% last month, one of its main priorities but hopes a recent easing of oil prices and an economic slowdown will be enough to prevent prices from getting out of control. If you would like to com...