BoE holds interest rates at 5.75%

The Bank of England kept interest rates at a six-year high of 5.75 per cent today.

The decision by the bank's Monetary Policy Committee (MPC) to leave rates at 5.75 per cent was widely expected, following last month's quarter-point hike.

But economists have warned that rates could go up again soon, possibly hitting 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.

Figures out tomorrow are forecast to show that the level of bankruptcies has risen in recent months.