The Bank of England has opted to maintain the base rate of interest at five per cent after its monetary policy committee met this morning.
Many businesses and consumers with debt management problems have been hoping that the bank would reduce interest rates but this will not happen for another month at least.
A number of organisations had called for a cut in the cost of borrowing in order to boost the economy but the latest inflation data was such that the decision by the bank was widely expected by economists.
Responding to the base rate hold, the Royal Institute of Chartered Surveyors said: “The weakening economic picture, as signalled most visibly by the deterioration in both business and consumer sentiment, will justify an easing in policy later in the year.”
Credit Action revealed recently that the average British household pays out almost £3,775 every year to service the interest on their respective debt management mountains.
By Dan Mather