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Bank of England holds Base Rate at 0.5 per cent

The Bank of England's Monetary Policy Committee today announced that it would hold interest rates at 0.5 per cent. There has been no movement in Base Rate since it was reduced in March this year. This has come as no surprise and Savills Private Finance (SPF) believes that rates will be held at 0.5 per cent for some time yet but could then rise fairly rapidly.

Where from here...

Despite the economy still being in recession, more positive signs are emerging that possibly point to a rosier future. 

The Nationwide, upon reporting the third monthly rise in its house price index, went on to suggest that there is now a "reasonable chance that prices could end the year slightly higher than where they started". A picture very different to that painted at the start on the year.

A further sign of a pick up in the housing market comes from latest mortgage approval figures released by the Bank of England. In June, purchase approvals rose over three thousand to 47 584, the highest level since April 2008.

However positive these sign are, the figures are still well down on levels seen at the housing market's peak.

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