Adding to financial woes for homeowners, the Bank of England has made the decision to hold the Base Rate at five percent.
A majority vote of 8-1 was in favour of holding rates for a second consecutive month.
Many homeowners are already dealing with mortgage payments that have increased by hundreds of pounds.
Andrew Bailey, governor of the Bank of England, said on Thursday: “Inflationary pressures have continued to ease since we cut interest rates in August. The economy has been evolving broadly as we expected. If that continues, we should be able to reduce rates gradually over time.
“But it’s vital that inflation stays low, so we need to be careful not to cut too fast or by too much.”
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There has been uncertainty and frustration at the decision, with homeowners urged not to panic.
CEO of Octane Capital, Jonathan Samuels said the mortgage sector has been “responding well”.
He added: “Today’s decision to hold interest rates at five percent is unlikely to dent this growing market positivity and we expect more buyers to be tempted back into the fold, while the overall health of the UK property market will continue to strengthen.”
However, Nigel Green, CEO of independent financial advisory and asset management firm Devere Group has said the decision was “another mistake”.
He said: “This is no time for hesitation. The Bank of England’s decision to pause rate cuts is a missed opportunity. We believe they need to adopt an aggressive approach now to further lower borrowing costs, drive growth, and restore confidence in the UK economy.”
The Bank of England has indicated there could be cuts before the end of the year – giving hope for November and December’s rates.
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