5 June 2007
Financial analysts have predicted that the Bank of England's monetary policy committee (MPC) will refrain from raising the base rate of interest by another quarter point later this week, providing secured loan holders a brief respite from the steadily spiralling repayment costs.
A large majority of the city analysts polled by Reuters declared that the MPC would hold the base rate at 5.5% with just five of the 58 economists predicting a quarter point rise.
The decision is largely based on the fact that the MPC backed down from the suggestion of raising it by half a percent last month, opting for a 0.25% increase instead, suggesting that short, sharp shock tactics were now being dropped in favour of slow increments.
Other positive signs for secured loan holders include the fact that the housing market has shown signs of cooling and the retail sales market has also slowed, helping to lower the inflation rate.
The British Retail Consortium's Director General, Kevin Hawkins, said recently that the decrease in retail sales was proof that the interest rate rises were working.
"Although the weather was bound to depress sales growth, many of our members believe that the cumulative effects of the recent rate rises are beginning to show up," he told the Telegraph.
"The Bank should think twice before putting up rates again in the near future."
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.
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