0.5% bank rate expected to remain until 2017

April 5, 2016
bank of england interest rate

According to a Reuters poll The Bank of England (BoE) will leave British interest rates at a record low until early 2017, this is mainly down to stuttering global growth and off target inflation.

The 0.5% bank rate has now not changed over the last 7 years and it is now expected according to the poll of 50 economists reportedly taken in the past few days that the BoE will not act until early 2017.

There was only a median 40 percent chance the Bank will have raised rates by the end of this year, down from the 45 percent in a March 8 poll.

Thomas Bloomfield at 4CAST reportedly said “At this stage, a 2016 rate hike is wishful thinking given the headwinds that currently face the UK economy,”

Any increases are expected be gradual and the initial 25 basis point increase will be followed by matching moves in the second and fourth quarters of next year. none of the 50 economists polled expect any move when the Bank’s Monetary Policy Committee makes its latest policy announcement on April 14.

 

 

 

 

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Breaking News

How will tenants be affected by the incoming Renters’ Rights Act?

On 28th October 2025, the Renters’ Rights Bill was passed into law, and it is now the Renters’ Rights Act. Changes to legislation resulting from this new Act will take effect from May 2026. This will affect landlords and how they let out their property, and it is worthwhile being aware of how it affects…
Read More →
Seaside Properties UK
Overseas Property

Gibraltar property values rise faster than UK

Gibraltar house prices rise faster than UK and London, despite market activity dropping 46% The latest market analysis by Enness Global has revealed that Gibraltar’s property market has seen stronger annual house price growth than both the UK and London, even as the number of transactions completing across the market has fallen sharply, creating a…
Read More →
Breaking News

Homes with fewer photos priced £80,000 lower

The latest research by London lettings and estate agent, Benham and Reeves, has revealed a stark disparity in asking prices depending on how extensively a property is marketed, with homes listed using four photos or fewer priced almost £80,000 lower on average than those benefiting from five or more images. Benham and Reeves analysed current…
Read More →
Breaking News

January market momentum builds

Analysis of the latest market data by eXp UK has revealed that the UK property market has picked up pace in January, with both new instruction volumes and the price of these new listings increasing when compared to the same period in previous years. eXp UK analysed the latest market data*, looking at both new…
Read More →
Rightmove logo
Breaking News

More affordable locations grew most in price in 2025

New analysis of the 2025 market highlights that lower-priced locations grew the most in asking prices during 2025 as affordability continued to drive buyer behaviour Across the top 50 local areas where property asking prices grew the most last year, only seven are priced above the current national average of £368,031 Hawick in Roxburghshire in…
Read More →
Breaking News

UK Gov announcement capping ground rents at £250

The Government has announced that it will cap ground rents at £250 per year in England and Wales, as part of changes to the leasehold system. The measures announced by the Prime Minister aim to give homeowners greater control over their properties and include new leasehold flats to be banned and existing leaseholders getting the…
Read More →