The Bank of England today voted to keep interest rates at 5% by a margin of eight to one. This demonstrated further the banks focus on keeping inflation under control rather than offer respite to mortgage holders.

Various member of the monetary policy committee also indicated that there would not be another rate cut for several months yet.

Recent data showed the Consumer Prices Index (CPI) reached an annual rate of 3%, above the government’s own target of 2%. March’s 0.8% monthly rise in consumer prices was the steepest for nearly seven years.

There is some consolation though as rate cuts in previous months that were not immediately passed on to the consumer are beginning to make themselves felt, various high street lenders have cut their rates recently amid signs that banks are coming out of the state of panic brought on by the collapse of Northern Rock last year.

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