The Bank of England has revealed that the national base rate of interest will remain static at 5 ¼ percent, to be re-reviewed at the MPC’s next meeting.
In the run up to the meeting, financial analysts throughout the country have suggested that the outcome would be a non mover, stating that tackling the inflationary factors which are affecting a rise in current household bills would be more of a priority for the committee.
In response to the news, a spokesperson for a UK based banking and savings institution commented the MPC’s decision to hold the base rate at its current level, further supported the theory that the UK’s economy is slowing down. The representative went on to say that it was almost a certainty for the BOE to continue to reduce interest throughout the course of the year, in an attempt to counteract negative economic change.
In other news, gross borrowing across all aspects of the credit industry is believed to be down, with personal loan providers reporting a 20% drop in demand since the start of the year.
