6 Sep

Base rate remaining at 0.5 per cent 'would be good news for homeowners'

Base rate remaining at 0.5 per cent 'would be good news for homeowners'

The Bank of England base rate is likely to remain at 0.5 per cent, according to one expert, which will come as good news to homeowners or those looking for a house for sale in the UK.

Chartered financial planner at Informed Choice Martin Bamford said that when the Monetary Policy Committee (MPC) meets later this week (September 9th 2010), he thinks it will decide to keep the base rate at the same level.

"We expect the MPC to maintain the Bank Rate at 0.5 per cent for at least the rest of this year," he commented.

"It would be a big surprise to see a rate hike now."

Mr Bamford stated that if the base rate increased, this could "stifle economic recovery" by imposing a higher cost of borrowing.

Last month, the MPC voted on maintaining the base rate at 0.5 per cent after it was reduced by 0.5 percentage points in March 2009.ADNFCR-1222-ID-800053757-ADNFCR

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