Property investors to benefit as interest rate change looks unlikely

07 2008
Prospective first-time buyers are unlikely to welcome the news that financial experts believe that the Bank of England will not move to cut interest rates this month.

With the Bank's Monetary Policy Committee (MPC) due to meet this week, many would-be buyers have been looking for a leg-up, with a cut to the base rate of interest making it easier for them to obtain a mortgage on their own home.

However, of nine economists and financial institutions questioned in a new poll carried out by Adfero, all nine revealed that they expect the rate to remain at five per cent as the Bank looks to curb rising inflation.

"We are expecting a hold at the meeting next week," explained Richard Snook, economist at the Centre for Economic and Business Research ltd (CEBR).

"The growth indicators have deteriorated quite seriously in the last month or so, particularly the PMI indices; furthermore, we are expecting inflation to comeback quite sharply and there is very little that the bank do now that is going to set the bar to inflation over the next six months."ADNFCR-1219-ID-18672280-ADNFCR

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