Bank Base Rate – Changes May Be Further Away
14th January 2016
The Bank of England have yet again left rates unchanged at the 0.5% level which has now been at that level since March 2009.
The voting went as last time with only one member of the MPC voting for an immediate increase to 0.75%.
Whilst the actual rate decision itself was a foregone conclusion, this was always going to be about the minutes and their tone.
Given current global issues, especially in China and the free-falling oil price, as well as some poor manufacturing figures and downward revisions of UK GDP, it would seem that inflationary prospects will continue to be weak.
This has led to many pushing out further the date of a future rate rise rather than hurrying to follow the US.
As we have seen, especially with the current Governor, things can change quickly and the tone of MPC members will be carefully watched over the next few weeks.
The big question remains, will we see any rate changes this year at all?
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Andrew Montlake, Director and Spokesperson for Coreco, gives his honest and forthright views on the mortgage market, economy and all things property related. Monty was voted "Mortgage Personality of the year 2008", "Best Press Spokesperson" in 2011 and is the current holder of the British Mortgage Awards “Best Marketeer” title. Expect expert analysis, delivered in a down to earth style with a side helping of exuberance.