The Bank of England’s monetary policy committee (MPC) was split over the issue of where to set the base rate of interest when they met earlier this month, it has been revealed.
Minutes from the latest meeting showed that six members of the committee felt that a quarter point cut in borrowing costs was necessary, three others were convinced that no change was needed and one asserted that the rate should be reduced to 4.75 per cent.
Families across the country are struggling to clear their mortgage-related debt management problems and the recent cut in the base rate is supposed to reduce some of their financial burdens.
However, the principal concern for the MPC is keeping inflation in line with their targets and they were faced with the fact that the housing market has been weakening and becoming debt free is becoming more difficult for many consumers.
Cuts in the base rate of interest have been introduced by the Bank of England twice this so far and in December 2007.