Bank keeps interest rates on hold

Interest rates have been kept on hold at 5.75 per cent by the Bank of England.

The decision by the Bank's Monetary Policy Committee was widely expected following last month's quarter-point hike.

But economists have warned that rates could go up again soon and possibly hit 6 per cent by the autumn.

Homeowners have faced five rises since last August, which together have added around £80 a month on average to the typical £100,000 mortgage.

Concerns have been raised that the increases in the cost of borrowing have left many debt-laden consumers over-stretched financially.

The Consumer Credit Counselling Service said it has seen a rise in the number of calls to its helplines and insolvency figures out tomorrow are forecast to show that the level of bankruptcies has risen in recent months.

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