Interest rate freeze was 7-2 decision

Interest Rate riseThe recent decision to freeze interest rates for February was a 7-2 decision, minutes from the Monetary Policy Commitee meeting reveal. It was decided that more time was needed to see the impact of the shock January rise before any further action was taken.

Don’t get too comfortable though as, with inflation 0.7% above the 2% target, further rate increases look probable in the medium term. If you’re looking to take out a mortgage I would definitely consider a fixed rate as any tracker mortgage is going to be subject to these probable base rate increases.

When I took out my mortgage over 6 months ago, I was advised by some experts to go for a tracker as rates “were unlikely to increase”. Luckily I read up on the issue and plumped for a fixed rate - and since then rates have increased by 0.75%. It just goes to show that you can’t take the word of experts all the time!

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