News
Base rate remains on hold
The recent decision by the Bank of England’s Monetary Committee to keep the base rate on hold at 0.5% for another month running is very much as expected and appreciated by thousands of mortgagees across the country.
Andy Cuthbert, Managing Director of dot financial services, comments
“Although inflationary pressures have eased which is a more positive indication that the market is picking up, it is important to look at the wider picture. Overall UK house prices have dipped as we’ve entered into quarter 3 and although unemployment has fallen, this is only by 0.1%, which is largely made up by an increase in the number of part-time workers.
As mortgage lending remains sluggish, the economy still has some way to go before we see ourselves in sustained recovery and so raising interest rates ahead of planned public spending cuts and tax increases could suppress consumer confidence even further. I agree that the base rate should remain low for the foreseeable future in order to support economic recovery.”
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