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Bank of England Base Rate on hold

The Bank of England announced today that interest rates will be held for the sixteenth consecutive month at 0.5 per cent. This comes as no surprise to SPF.

''The economy remains fragile and any rise in interest rates will threaten this'', comments Mark Harris, Managing Director. '' I believe there are hundreds of thousands of homeowners on low standard variable or base rate tracker mortgages for whom any change in monthly payments will act as a catalyst and tip them over the edge. Inflation remains the biggest threat to a continued static base rate but we must continue to believe it will fall in line with Government policy of 2% later in the year and the majority of data continues to support this theory. I remain convinced we will see base rate at the current level for the next few months provided inflationary pressure is controlled.''

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