Property News

Thursday, July 05, 2007

Another interest rate rise

Today, The Bank of England's Monetary Policy Committee (MPC) has opted to increase interest rates by 0.25% to 5.75%.

It was raised in order to try and curb spending and reduce inflationary pressure. Although consumer price index inflation (CPI) fell back to 2.5% in June, the MPC decided that a further interest rate increase was necessary.

A statement from the Bank said: "Although pay pressures remain muted, the margin of spare capacity in businesses appears limited and most indicators of pricing pressure remain elevated. Against that background, it further judged that an increase in Bank Rate of 0.25 percentage points to 5.75% was necessary to meet the two per cent target for CPI inflation in the medium term."