Bank signals no rate change

The bank of England’s Monetary Policy Committee (MPC) has announced that the base rate is to remain unchanged at 0.5 per cent.

At noon today the MPC revealed that for the seventh month in succession it was keeping the level at its record low figure, while the level of quantitative easing is also unaltered at £175 billion.

This may indicate that the level of interest is unlikely to change soon, something that could make now a good time to apply for a loan.

A poll this week by portfolio management company Young Group found that 98 per cent of property investors expect the base rate to stay below two per cent in the next 12 months.

This would still leave it lower than at any time in the history of the Bank of England before the current crisis.

On average, the investors polled predicted an increase of 1.2 per cent.

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