Bank 'stuck between a rock and a hard place'

Inflationary pressures are placing the Bank of England in a difficult position where interest rates are concerned, a financial expert at Fool.co.uk has said.

Jane Baker commented that consumer confidence has been shaken in Britain, but the monetary policy committee will find it difficult to cut interest rates and boost consumer sentiment while the drive to quell inflation is still a priority.

"The Bank of England looks like it's stuck between a rock and a hard place with interest rates," Ms Baker said, adding that "sitting on the fence" will not reassure consumers.

Rising mortgage repayments - perhaps accompanied by worries about mortgage arrears and repossession - are combining with a hike in the day-to-day costs of living to fuel Britons' monetary concerns, she said.

Click n Go Mortgages this week recommended shared equity loans for first-time buyers finding it difficult to raise money for a deposit in the current climate.

How can I get repossessions stopped