Rates on hold this month, but for how much longer?
The Monetary Policy Committee at the Bank of England has voted to keep rates on hold at 0.75% in March.
The nine-person committee made the unanimous – and widely expected – decision on Wed 20th March.
The Bank of England noted that “Brexit uncertainties continue to weigh on confidence and short-term economic activity, notably business investment”.
What does it mean for borrowers?
This week’s decision to hold the Base Rate means that mortgage borrowers on standard variable rates, discounted variable rates and tracker rates won’t see any change to their mortgage pay rates in the short term.
What about the future?
It’s impossible to predict what will happen to interest rates with any degree of certainty.
The Bank noted, again, that the economic outlook will continue to depend significantly on the nature and timing of EU withdrawal, in particular the new trading arrangements between the European Union and the United Kingdom.
It’s report said: “The monetary policy response to Brexit, whatever form it takes, will not be automatic and could be in either direction.”