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Commercial mortgage holders learn base rate decision

Commercial mortgage holders learn base rate decision
Date: 11/7/2009

Borrowers in the UK such as commercial mortgage holders yesterday (November 5th) learned that interest rates will remain the same for the next month.

The Bank of England's monetary policy committee (MPC) voted to keep the base rate at 0.5 per cent.

It is the eighth month in a row that the cost of borrowing has been frozen, following the MPC's decision to bring down the rate to its current record low level in March 2009.

A statement from the MPC said: "In the light of the committee's latest Inflation Report projections and in order to keep inflation on track to meet the two per cent inflation target over the medium term, the committee judged that maintaining the bank rate at 0.5 per cent was appropriate."

Yesterday's decision was widely predicted by finance industry experts. Indeed, many economists have suggested that the current base rate will stay in place for the whole of 2010.

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