Bank of England keeps rates on hold

Bank-of-England-Building-BoE-Bus-700x450.jpgThe Bank of England’s monetary policy committee has voted to keep interest rates on hold at 0.75 per cent.

Most economist and housing analysts were not predicting any rise, following the decision to raise interest rates by 0.25 per cent in July.

Santander chief economist Frances Haque says: “The decision to hold rates was widely expected despite the more positive outlook for economic growth.

“Although inflation remains above the 2 per cent level and wage growth has tipped 3 per cent, the MPC looks to have remained cautious in its approach, wanting to wait until the outcome on Brexit is known before raising rates further.”

He added that he would not expect to MPC to raise rates again until after March 2019, assuming a Brexit deal is struck.

Legal & General Mortgage Club director Kevin Roberts adds:“A hold in the base rate is no doubt welcome news for borrowers.

“Mortgage rates continue to remain at near-record lows and there is also a growing number of innovative solutions for first-time buyers and retirees alike available on the market.”

Trussle mortgage expert Dilpreet Bhagrath adds:  “Avoiding another rate rise is undoubtedly good news for home owners on variable rate mortgage deals.

“We’re still in a period of very low mortgage rates, so borrowers should check whether they could save money by switching to one of the more competitive deals on the market.”

Recommended

Mark-Carney-close-up-focused-700.jpg

Carney to remain as BoE governor until 2020

Chancellor Philip Hammond has asked Mark Carney to stay on as Bank of England governor until 31 January 2020 to ensure a smooth exit from the EU. The extension was agreed in an exchange of letters between the governor and the chancellor published this morning. Bank of England deputy governor with responsibility for financial stability Jon Cunliffe has […]

Bank-of-England-BoE-Building-Horse-700x450.jpg

Rise and fall: historical interest rates in the UK, 1979-2017

A timeline of key events and data relating to historical interest rates in the UK, 1979-2017. Historical antecedents  Interest rates were very stable in the UK during the 18th century, staying put at between 4 and 5 per cent. Moving into the 19th century, there was more volatility, with interest rates shifting between 4 and […]

Force developers to build less “homogenous” homes: Letwin

The government should adopt a new set of planning rules to speed up building in areas of high demand, and to force developers to provide more varied housing options, an influential report has concluded. Former minister Sir Oliver Letwin was asked to conduct an independent review of build out rates in last year’s Budget. He […]

How to balance bottom-up with top-down research in constructing multi-asset credit portfolios

In this short video, Azhar Hussain, head of global high yield at Royal London Asset Management, explains how his team balance bottom-up with top-down research in constructing multi-asset credit portfolios. Watch the video in full The value of investments and the income from them is not guaranteed and may go down as well as up […]

Newsletter

News and expert analysis straight to your inbox

Sign up