The Bank of England has, as expected, left UK interest rates unchanged this month in the wake of recent upbeat economic data.
The Bank’s Monetary Policy Committee slashed the UK base rate from 0.5 per cent to a new record low of 0.25 per cent in August to help cushion the impact of Brexit on the UK economy.
The Bank of England’s Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target and in a way that helps to sustain growth and employment. At its meeting ending on 14 September 2016, the MPC voted unanimously to maintain Bank Rate at 0.25%.
Many banks announced cuts in Standard Variable Rate and Tracker mortgage rates in line with the cut in Bank Rate. Deposit rates fell in August, although on average these falls were slightly smaller than the cut in Bank Rate. Fixed rates on new mortgage lending also fell.
Founder and CEO of eMoov.co.uk, Russell Quirk, comments on the Bank of England’s decision to leave interest rates frozen at 0.25%
“Today’s decision to leave interest rates frozen at 0.25% will no doubt continue to strengthen an already resilient post-Brexit UK property market.
With property prices across the UK continuing their upward trend since the decision to leave the EU, it will come as welcome news for those looking to get a foot on the ladder in an already inflated market, due to the availability of tantalising mortgages products currently on the market.
It should act as further reassurance to UK buyers and sellers that the property market is in good health and, will no doubt help boost this positive sentiment.
It will be interesting to see if an increase does come in November, although by that time any shackles of uncertainty should be well and truly shaken off.”
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