MPC holds interest rates at 5%

The Bank of England's decision to hold interest rates at 5% comes as no surprise due to the inflationary pressures that are effecting the economy at present.

It was still likely to be a tough decision for the MPC members as the UK public are being squeezed financially with the cost of mortgages, fuel, food and energy costs. There are also still a widespread funding shortage for lenders. However the inflationary pressure has taken preference, after all it is the bank's remit to keep inflation in check.

Borrowers will have to hope that the Bank of England's liquidity scheme shows signs of working it's way into the economy which in turn will allow lenders to relax rates and criteria slightly. Only time will tell.

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