Bank of England Holds Base Rate

For the sixth meeting in a row, the Bank of England have voted to maintain the base rate. 8 voted in favour of keeping the rate at 5.25%, with 1 voting to decrease the rate to 5% and 0 votes to increase.

Holding at 5.25% will be welcome news to those predicting a decrease in the base rate, and therefore mortgage rates, around summer time.

Consumer price inflation was 4.0% on a 12 month basis in December and January, falling to 3.4% in February. Food and clothing prices are significant contributors to the decrease, whilst the next few months will be important to meet the Bank of England's target of 2.0%.