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Interest rate decision welcomed

Interest rate decision welcomed

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The Bank of England's decision to hold the interest rate at five per cent this month has been received warmly by one financial expert.

According to the head of strategy at Aegon Asset Management, William Dinning, the Bank's monetary policy committee (MPC) was sensible in its avoidance of a rate cut.

"With food and energy prices rising as they are, and with some signs of unrest in the labour market, the BoE [Bank of England] can't afford to drop its vigilance against rising inflation expectations," he said.

Furthermore, Mr Dinning noted that the Bank has stated that it believes the worst part of the credit crunch is now over.

If the interest rate had been reduced then some homeowners may have seen their monthly mortgage payments reduced.

The publication of the MPC's two-day meeting will be published on the May 21st.

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

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