Interest rates stick at 5.75 per cent
Published: 03-Aug-2007
The Bank of England's Monetary Policy Committee (MPC) has decided to keep interest rates unchanged in August.
Yesterday (August 2nd), the MPC announced that interest rates would remain at 5.75 per cent for the month.
This means that interest rates have increased five times in the last year as the MPC tries to control spending and inflation in the economy.
Responding to the decision, the National Association of Estate Agents (NAEA) expressed relief and added that a further increase would have been bad news for the UK market.
"Following last month's decision by the MPC to increase rates we are pleased that it has not jumped in too early with another rise in August," commented Peter Bolton King, chief executive at the NAEA.
"It takes time for the market to react following an increase. We are only just seeing the effects of the July rise as the market appears to be cooling in many areas.
"Going forward, we urge the MPC to err on the side ofcaution and maintain rates until the end of the year to allow consumers and the market time to adjust."
