8 Oct

Base rate freeze "no surprise"

Base rate freeze "no surprise"

Team Association customers may be intrigued to read that one property expert has asserted that the Bank of England's decision to maintain the base rate at 0.05 per cent and continue with its asset purchase programme is "no surprise".

Robert Sinclair, director of the Association of Mortgage Intermediaries, said that the move will create tension at November's Monetary Policy Committee (MPC) meeting, as the MPC will be expected to provide "clear direction".

His comments follow today's MPC vote to maintain the official bank rate paid on commercial bank reserves at 0.5 per cent.

It will also continue with its £175 billion programme of asset purchases, which is financed by the issuance of central bank reserves and is expected to be completed within one month.

"The next round of data on inflation, GDP, balance of payments and unemployment will form an uneasy back-drop. It will not be a meeting for the faint-hearted," stated Mr Sinclair.

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