The Bank of England’s monetary policy committee (MPC) has opted to maintain the base rate of interest at five per cent, it has been announced.
A cut in the base rate might have offered some relief to the millions of people around the country who are struggling to deal with their debt management and money problems.
Despite the ongoing slowdown in the economy, which has seen average house prices falling throughout the year and consumers having their finances steadily squeezed, the MPC did not feel a rate cut could be justified.
According to Howard Archer from Global Insight, the committee’s hands were effectively tied by the fact that inflation has been on the increase and cutting the cost of borrowing could have exacerbated the problem.
"The Bank of England really had little option but to leave interest rates unchanged at five per cent," he said.
Earlier this week, a report from Gocompare.com suggested that around a quarter of British homeowners feel trapped in their own property because of money problems and the difficulty of securing a mortgage deal.