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MPC's decision supported

MPC's decision supported

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The move by the Bank of England's monetary policy committee (MPC) to not cut the base rate this month has been supported by high-profile figures in the financial services industry.

According to Trevor Williams, chief economist at Lloyds TSB Corporate Markets, the vote to hold the base rate of interest at five per cent was the correct decision.

The Council of Mortgage Lenders is also in agreement, noting the Bank's concerns over rising inflation.

However, director general of the CML Michael Coogan remarked that borrowers are still suffering from"affordability pressures" while lenders are troubled by "a widespread funding shortage".

"We hope that as the effects of the Bank of England's liquidity scheme feed through the financial system there will be some benefits for mortgage lenders, and in turn borrowers, later in the year," he said.

The minutes from this month's two-day MPC meeting will be published on June 18th.

Your home may be repossessed if you do not keep up repayments on your mortgage.

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