Bank of England maintains interest rates - commercial mortgages

04 September 2008

In news that could influence commercial mortgages, it has been announced that interest rates are to be maintained at five per cent.

The Bank of England's Monetary Policy Committee voted to keep the official rate at the previous level.

It was last reduced on April 10th when it was lowered by 0.25 percentage points.

Spokesman for Virgin Money Grant Bather said the revelation was not surprising and predicted that holding the rate may help to provide stability in the market.

However, he added: "With household bills, food and petrol all rising at inflation busting rates, consumers and businesses will be looking for a cut soon."

A recent poll of nine economists including analysts from the Royal Bank of Scotland, Lloyds TSB and the Council of Mortgage Lenders, was conducted before the Bank's announcement - every one of those questioned predicted no change.