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Interest rates held at 0.25%

Christina Hoghton
Written By:
Christina Hoghton
Posted:
Updated:
15/09/2016

The Bank of England decided against a further cut in rates in September

Interest rates have been held at their historic low of 0.25% by the Bank of England’s Monetary Policy Committee.

Last month the MPC voted to cut rates to from 0.5% to 0.25% after they had maintained them at the same level for seven and a half years.

The Committee said the August move to cut rates to 0.25% had a ‘greater than anticipated’ positive impact on UK asset prices, but admitted that the economy was likely to see little growth in the second half of 2016.

Ishaan Malhi, founder and CEO of online mortgage adviser Trussle, said: “Having cut the base rate to a historic low last month it was always doubtful we’d see a further reduction today, but despite the Bank of England’s decisive action, thousands of homeowners across the UK are still yet to feel any relief on their mortgage payments.

“At least two mortgage lenders (West Bromwich Building Society and First Direct) have ruled out passing on the rate cut to their borrowers through a reduction to their standard variable rates (SVRs), with a further five (Halifax, NatWest, Principality, RBS and Scottish Widows) refusing to do so until at least October.”