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.
Many economists believe that a cut is the clear choice, given the continued retail slowdown, but others state that recovering optimism amongst British companies and an increase in the number of mortgage approvals means the base rate should be held. A minority supporting an interest rate rise to curb inflationary factors.
The recent recovery in the world economy would seem to bear out a decision to leave the base interest rate alone, but we’ll have to wait until this Wednesdays and Thursdays meetings of the MPC to find out, and you can rest assured we’ll keep you posted on this important topic for mortgage borrowers across the UK.
