Alliance and Leicester comments on today's MPC decision to maintain base rate at 5.75%

Edited by the Insidemoneytalk editorial team Oct 8, 2007

Stephen Leonard, Director of Mortgages at Alliance and Leicester, said:...

..."Today's interest rate decision shows that Bank of England continues to take a cautious mid to long-term view about inflation.

Any future decision to reduce interest rates will be made once the bank has a clearer view on how the recent turbulence in world markets affects the economy.

"For borrowers looking to remortgage or take out a new mortgage this month, a tracker mortgage is a sound option in the current interest rate environment.

However, borrowers opting for a tracker mortgage should ensure they are financially comfortable enough to withstand an increase in monthly payments should there be any future rate rises." 4 October 2007.