Homeowners are assured another month of a steady Bank set standard base interest rate of 0.5 per cent.  For those that have a mortgage debt interest rate set on the Bank of England’s Monetary Policy Committee’s (MPC) rate a sigh of relief is in order.  While there are some economists warning a MPC increase could come sooner than later it still is far off as far as most view the current situation.  In fact some expect the 0.5 per cent rate to remain into 2013.  Currently the rate has been steady and unchanged for three years.

The May MPC meeting closed with the committee choosing to not act against the base interest rate and to not extend its quantitative easing programme (QE).  The current bond buying stimulus programme sits at £325 billion.

Ray Boulger of John Charcol remarked last week on the MPC meeting saying, “In terms of whether any policy action was required today, MPC members are unlikely to have spent much, if any, time discussing whether to change Bank Rate.

“The only decisions requiring any serious consideration were whether to add to the current £325 billion of QE and what comments to record in order to pad out the minutes.

“As the economic outlook in both the UK and the Eurozone has deteriorated over the last month it would not be surprising if David Miles was not alone this month in voting for some additional QE.”

The minutes will reveal the tone of the MPC meeting when released later on in the month.

Homeowners are not in the clear from rising interest rates however as lenders have been busy raising their interest rate levels on remortgage deals and many have increased their standard variable rates as well.