Interest rates remain on hold
The Bank of England votes once again to keep interest rates on hold at 0.5%, yesterday policymakers voted unanimously to hold borrowing costs this month and they gave little indication that there would be an increase any time in the near future.
The possibility of any UK interest rate rise receded further after the Bank of England cut its forecasts for growth, wages and inflation, the Bank softened its outlook for inflation which has been close to zero for a year as global commodity prices have fallen.
The Governor of The Bank of England, Mark Carney said that the UK was well placed to cope with global headwinds thanks to high employment, strong domestic demand and a better capitalised banking sector.
Economists do not expect a move in interest rates until the end of this year, financial markets however are not pricing in a rise for another two years.
At a time when many believe the UK property market is becoming overextended this growing period of low finance costs is likely to feed further demand for UK property.