Base Rate Cut 1/4% to 4.5%
The Bank of England Monetary Policy Committee has cut the base lending interest rate 1/4% to 4.5% after months of speculation that a rate cut would come in August.
Interest Rate Cut Too Close to Call
The week ahead is an important one for those with variable rate mortgages, as once again the Bank of England Monetary Policy Committee will meet and decide whether or not to impose a cut in the base interest rate.
Base Rate Held
The Bank of England’s monetary policy committee voted to keep the base rate at 4.75% last week, despite pressure from business groups to cut interest rates following weak performance in the housing market and on the high street.
Mortgage Rates Tumble
The Sunday Times ‘Money’ supplement July 3rd, 2005 writes:
Borrowers urged not to miss out as mortgage rates tumble
…Fixed rate mortgages are priced according to swap rates…[that] have started to tumble… This will put pressure on the Bank of England to cut interest rates sooner rather than later. A Reuters poll showed that nearly 40% of economists believe the first rate cut will come in August… the consensus was that there would be two rate cuts this year.
