The Bank of England’s Monetary Policy Committee (MPC) has kept interest rates on hold at 5%. The decision was expected by many commentators  as the MPC do not have the same aggresive approach as the US Fed. Also the threat of rising inflation, particularly on fuel and food, is every present.

However the economy is continuing to slow, with the housing sector bearing the brunt. Consequently interest rates are expected to be cut in June by 0.25% with further cuts coming over the next 12 months to take rates down to 4.25%. Good news for those with tracker mortgages, but the question whether these reductions will be passed on to fixed rate customers still remains.

The Bank of England’s Monetary Policy Committee (MPC) voted 7 - 2 in favour of interest rates remaining on hold at 5.25%., citing the need to focus on inflation as the reason for the decision. The two dissenting voters wanted a quarter point cut to follow the 0.25% cut in February.

The news that there was mixed views in the committee, together with the aggresive 0.75% cut in the US could pave the way for a cut in April, a month sooner than many commentators had originally suggested.

The Bank of England’s Monetary Policy Committee (MPC) has kept rates on hold at 5.25%. The decision was widely expected by analysts who are predicting a further rate cut in May and possibly another cut later in the year.

Keeping rates at 5.25% could well have been a close call by the Committee as they had a real mixed bag of data and performance indicators to work with. House prices and mortgage approvals continue to slow, whilst price increases on food and fuel remain high. The balancing act has resulted in a ‘wait and see’ approach and so that’s what we’ll need to do.

The Bank of England’s Monetary Policy Committee (MPC) voted in favour of the 0.25% rate cut in February by 8-1. The majority vote supports the view that the Bank deems the credit crunch and slowing housing market to carry greater weight than the inflationary pressures caused by higher food and fuel prices.

Commentators believed that the prospect of future rate cuts were diminishing but this latest report and level of majority suggests that a further two or three 0.25% cuts in the near future could be possible.