8 May

BSA unsurprised by base rate decision

BSA unsurprised by base rate decision

It was no surprise that the Bank of England's monetary policy committee (MPC) opted to keep interest rates at 0.5 per cent yesterday, according to the Building Societies Association (BSA).

The Royal Institution of Chartered Surveyors (Rics) also suggested that the lack of movement in the base rate was predictable.

However, the BSA said that the decision to freeze rates "does nothing" to prompt lenders to attract new deposits for mortgage funding.

Despite this comment, Nationwide Building Society's latest housing survey indicated that property prices dropped in April, which could make bricks and mortar more affordable for those looking to get on the housing ladder.

Meanwhile, Rics used yesterday's MPC announcement to reflect on the state of the industry.

The group is hopeful that the Bank's asset purchasing programme will stimulate market activity.

A statement from Rics said: "That is one vital way to allow the recent increase in buyer enquiries to translate into an increase in sales and may help to lift the housing market out of its depressed state."
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