Base rate effect ‘barely started’
The latest quarter of a point increase in the base rate announced last week has barely had an effect on the market, it has been claimed.
The Bank of England's monetary policy committee voted to up the level of interest to 5.50 per cent on Thursday - the fourth time it has gone up since August 2006.
According to Lisa Taylor, an analyst at Moneyfacts.co.uk, the change has not yet had an impact on finances.
Ms Taylor stated that the savings industry has been slow to react, with 42 per cent changing policies. Similarly, 100 mortgage lenders are yet to announce changes to their products.
But the expert added that people should find the slow reaction easier on their finances.
"With consumers already having to contend with a 0.75% increase in the last nine months, the 0.25% will definitely be easier to swallow," she said.
Meanwhile, this week the inflation rate fell from 3.1 per cent to 2.8 per cent.
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