9 Nov 07 - Bank Votes To Hold Rates At 5.75%
Property investors with tracker mortgage deals will be
unsurprised by the Bank of England's decision to keep interest
rates on hold at 5.75%.
The move by the Bank's Monetary Policy Committee had been
widely anticipated by economists, although some were holding
out for a 0.25% cut. The decision to freeze borrowing costs
for the fourth month in a row comes despite data showing
growing pressure on the UK economy.
Recent house price figures from a number of lenders and
surveys have shown differing opinions on where values are
headed, but most seem to be in agreement that the future
will not be as rosy as the past five years. Philip Shaw,
chief economist at Investec, said rates will come down in
the short-term, with some experts pencilling in a reduction
as soon as next month. "Surveys and other indicators are
pointing towards a slowdown in the economy and we continue
to expect interest rates to fall over the coming months,"
he added.
Source: Bank
of England
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national news agency. Copyright (c) PA Business 2007.
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