Interest rate statement

John Hall, Chief Executive of Newtomorrow.com, said: “No change in the interest rate will disappoint homeowners but with inter-bank lending rates still relatively high, any cut would only have had, at best, a very small impact on the cost of borrowing.

“The global credit crunch will continue to bite in 2008 and, whilst base rates are likely to fall later in the year, any reduction will take time to feed through into mortgage rates. As a result, individuals still require prudent management of their finances to ensure debt does not become a problem.”