Interest rates held - commercial mortgages

09 July 2009

Those with commercial mortgages and other property finance products learnt today that the interest rate will remain at 0.5 per cent for another month.

At noon, the Bank of England's monetary policy committee (MPC) announced there would be no change in the cost of borrowing for the fourth month in a row.

Interest rates have now been at this record low level since March 2009, as the government tries to encourage more spending to boost the economy.

Many financial experts have predicted that the base rate will stay at 0.5 per cent for the remainder of the year.

Today's MPC statement indicated that the Bank will continue with its £125 billion asset purchase programme, which is financed by the issuance of central bank reserves.

It suggested that the initiative should take another month to complete, before the scale of the scheme is assessed during August's meeting.

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