Bank spares Britain’s indebted

Britain’s base rate of interest is to be held at 5.25 per cent, giving those people facing debt management a welcome reprieve from higher repayment charges, the Bank of England’s monetary policy committee (MPC) has decided.

A decision not to raise the cost of borrowing money across the country was widely predicted by economic experts, although warnings have been issued that added financial pressure could soon be out on those looking to find a debt solution.

“We expect the Bank of England to lift interest rates to 5.50 per cent by May at the latest as a precautionary measure aimed at containing medium-term inflation risks,” Howard Archer, chief UK and European economist said recently.

Interest rates were last increased in January following two rises last year and the cost of borrowing will now remain at 5.25 per cent for until another decision on the issue is delivered by the MPC early next month.