UK consumers faced an increase in their debt management difficulties last month after a quarter-point rise was introduced and there were fears that another hike would happen this week.
However, the bank’s monetary policy committee has decided that inflationary pressures were not strong enough to warrant an increase this month, although some expert observers have suggested the cost of borrowing will be raised at some point during the next few months.
Steve Cox, operations director of Spicerhaart Financial Services, remarked: “Rising interest rates have pushed up mortgage repayments and put a strain on consumer finances.”
“It was the right decision to hold the base rate at 5.5 per cent this month,” he added.
The base rate of interest was increased by a quarter-point in January and April this year, as well as twice over the course of 2006, which has put more pressure on consumers across the country aiming to find a solution to their debt management problems.