This is the sixth month in a row that rates have remained unchanged.
The MPC voted in August 2005 to cut base rates by a quarter point to stimulate economic growth in the UK. This was the first cut in rates since July 2003 when they were at 3.5 per cent.
Ray Boulger of mortgage adviser John Charcol believes that the base rate cut is postponed rather than cancelled. Despite earlier hopes of a cut this month a no change decision was widely expected. However, we firmly believe the trend is still downwards and therefore this a cut deferred, not a change of heart.
The danger of waiting too long before implementing the next cut is that the longer the delay the greater the risk of deeper cuts ultimately being needed to put the economy back on track.
