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September Interest Rates

The Bank of England Monetary Policy Committee (MPC) have decided to keep interest rates held at 4.75% during their September meeting, a decision that was welcomed by the British Chambers of Commerce (BCC) who were concerned that the rise in rates made last month has harmed its members, and that a further rise would compound the issue.

While there has been wide spread speculation that rates will be pushed up further by the MPC before the end of the year, it is seemly content to play the waiting game at the moment, which is something that mortgage payers and businesses will be happy to hear.

Sally Low, director of policy and external affairs said that the BCC was concerned that last month’s rate rise may damage British business, and urged the MPC to resist the pressure coming from some sectors calling for a further rate increase.

It is currently unclear as to what interest rates are going to do in the near-term, the property market is still showing good growth which is putting a certain amount of pressure on the MPC in favour of a rate rise, however businesses are still saying that they are struggling with the current economic climate, and are keen for rates to at least remain stable for the foreseeable future.

One thing is for certain though, and that is the MPC will continue to base its decisions based primarily on the consumer price index, as it is this that it is ultimately responsible for controlling and keeping as close to the target of 2% inflation as possible.