Mark Harris
Chief Executive
The Bank of England have today voted to hold the base rate at 4.5%.
As widely expected, the Monetary Policy Committee voted to hold interest rates at 4.5% at today’s meeting. Members voted by a majority of eight to one in favour of a hold, with one member favouring a 0.25 percentage point cut.
Commenting on the decision, Mark Harris, Chief Executive of SPF Private Clients, says:
“While predictable, given that inflation rose to 3% in January, this decision is still disappointing as another rate reduction would significantly boost the housing market and wider economy. The timing would have been particularly helpful with the stamp duty concession coming to an end this month.
“Further rate reductions are still expected but the timing of these is unknown. The good news for borrowers is that even though base rate has been held, lenders have been reducing their pricing on new fixed-rate products in recent days and weeks. A number of sub-4% deals are now available for those with the biggest deposits or sizeable levels of equity in their homes.
“Planning ahead in this uncertain environment is a sensible approach. A whole-of-market broker will be able to take you through the options available and suggest the best product for your particular circumstances. Rates can be reserved several months before you need them so get in touch to find out more.”
Next week we will also see the output and reaction from the Spring Statement, which will include an economic and fiscal outlook from the Office for Budget Responsibility.
