MPC hints at future rate changes

The Bank of England has said it could put interest rates up if its quantitative easing policy has an inflationary effect.

Minutes of this month's meeting showed that all nine members of the monetary policy committee (MPC) voted in favour of the proposition to trim the base rate to a new record low of 0.5 per cent.

That event also saw the decision in favour of the £75 billion asset purchase scheme, with the new money being aimed at the corporate credit market.

It was stated in the minutes that should this have any inflationary effect, the MPC has the option of raising the base rate again.

This may mean that those who can get a mortgage now may be well advised to do so, as there is a possibility that the cost of home loans may rise if rates are increased again.

In January this year there were 23,400 mortgages agreed for home purchase, figures from the Council of Mortgage Lenders showed