With these concerns in mind, and growing evidence to suggest growth is slowing, there have been calls for the bank to resume Quantitative Easing. On this occasion, the Committee also voted to maintain this at £200 billion.
MORTGAGE FINANCE
A mortgage price war has been building in recent weeks as lenders cut the cost of borrowing. Due to the low levels of activity in the housing market, some lenders have been unable to meet target. This coupled with the fact "swaps" which largely determine the price of fixed-rate mortgages, have moved downwards has meant lenders are now offering much more competitive deals in order to attract business. These cuts have lead to the arrival of two and five-year fixes around 2.39%and 3.39% respectively.