15 May 2007
The announcement from the Bank of England (BoE) that the inflation rate has dropped from 3.1% to 2.8% within two months will come as welcome news to those with secured loans.
Further interest rate rises are thought to be less likely in the near future, now that the inflation rate has dropped, meaning that borrowers will no longer need to fear a further increase in their repayments.
According to the Office of National Statistics, lower energy prices were the main contributing factor to the lowering of inflation, since it slowed down the consumer price index - the official measure used to determine inflation.
Howard Archer, chief economist at City research firm Global Insight, said that the lowering of inflation wasn't enough to prevent a further interest rate rise in the long-term, but that it now seemed likely that the monetary policy committee would hold off until August.
If you're a homeowner and looking for a secured loan, uSwitch.com can help you find the loan that best suits your circumstances. Even if you've had credit problems, we may still be able to find you a loan through our our impartial loans comparison service.
© 2008 Adfero Ltd
Content for the uSwitch.com market news service is provided by a third party, Adfero Ltd. Whilst uSwitch.com makes reasonable efforts to check the reliability of this content, uSwitch.com does not guarantee the accuracy thereof or endorse the views or opinions given by Adfero Ltd, unless expressly stated otherwise.