Rates to remain high |
01 2008 |
| Interest rates are unlikely to be cut in May, spelling bad news for mortgage borrowers. It is yet another reason why many people find renting property more beneficial financially. The Bank of England's Monetary Policy Committee (MPC) is due to meet on May 8th to announce May's rate cut decision. However, despite increasing pressure, Howard Archer from Global Insight believes that the MPC will choose to maintain the rate this month. "Recent weak data and survey evidence relating to consumer confidence, retail sales, the housing market and manufacturing activity heightens concern that the UK economic downturn is deepening and adds to the pressure on the Bank of England to cut interest rates further sooner rather than later," said Mr Archer. "An interest rate cut from five per cent to 4.75 per cent is certainly possible at the Bank of England's [meeting] next Thursday, but we suspect that most MPC members would prefer to delay acting until June," he added.  |
Related Articles |
| Property in Edinburgh falls 11% |
| House prices in Edinburgh have now fallen 11 per cent in a year, research... |
| NLA comments on 'reluctant landlord' |
| The National Landlord's Association (NLA) has commented on the phenomenon... |
| Rents tumbling as property supply rises |
| Research from the Royal Institution of Chartered Surveyors (Rics) Wales has... |
| Rent could drop as buy-to-let grows |
| Both interest rates and house prices are dropping at present, creating what... |
| Top London homes fall 11.5% in quarter |
| New homes in some of London's most sought-after locations have fallen by a... |
Copyright © 1995-2008 loot.com. All Rights Reserved. Designated trademarks and brands are the property of their respective owners. Use of this Web site constitutes acceptance of the loot