8
May
CML director 'disappointed' at interest rate decision
The director general of the Council of Mortgage Lenders (CML) has
expressed his disappointment at the Bank of England's decision to
hold mortgage rates at five per cent today.
Michael Coogan said he understood the difficult balancing act the
Bank has between rising inflation and slowing economic
growth.
However, he stated that the monetary policy committee "had an
opportunity to act to anticipate the worsening economic environment
today and it is disappointing that there has been no change".
Mr Coogan suggested that the mortgage and housing market is likely
to remain unstable and "challenging" for the rest of 2008, but
noted that most people are dealing with the problem
effectively.
For anyone that is facing financial difficulty, he recommended that
they contact their lender or a debt advisor as soon as
possible.
Analysts polled by Reuters and Adfero had predicted that the Bank
would hold rates this month if recent trends continue, there should
be a quarter point cut next month.
