Interest rates remain on hold

February 5, 2016
bank of england interest rate

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.

 

 

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

One-third of tenant income in the UK goes on rent

Lomond’s Summer 2026 Quarterly Insights report reveals tenants now spend an average of 32.7% of their yearly income on rent UK average rents rise to £1,369pcm, increasing by +4.3% in the same period last year Average rent in London reaches £2,418pcm, 76% higher than the UK average The average age of renters across the UK is now 31.5   Lomond, the UK’s leading network of lettings and sales agents, has…
Read More →
Finance

Six in 10 UK businesses look to adapt operations in response to extreme heat

37 per cent have increased heat-related investment, with 23 per cent considering it Cooling equipment, including air conditioning and ventilation, is the most common investment priority (28 per cent) Barclays anonymised client data shows that air conditioning suppliers saw cash inflows increase by 4.3 per cent year-on-year into Barclays accounts Consumers claim 25.1°C is their…
Read More →
Letting Agent Talk

Weathering RRA: It’s Not a Storm, It’s the Climate

Opinion: This Isn’t a Storm Agents Can Wait Out – It’s the New Climate By Sally Lawson    “Agents are heads-down, working their asses off to survive the RRA changes, to the detriment of everything else. But in order to get where they’re thriving too, agents must refocus and rebuild to make back the property…
Read More →
Breaking News

Breaking Property News 26/8/26

Daily bite-sized proptech and property news in partnership with Proptech-X.   AI has Changed the value of proptech and legacy technology is paying the price AI has Changed the value of proptech and legacy technology is paying the price Thought leadership by Andrew Stanton For more than two decades, the value of proptech was built around…
Read More →
Breaking News

Commuter belt property values outperform every major UK city

The latest research from Yopa has revealed that house price growth across the commuter belt is outperforming the city itself across every major UK city analysed, with the gap as wide as 4.6 percentage points.   Yopa analysed the annual rate of house price growth across 12 major UK cities and compared it to the…
Read More →
Breaking News

Buyers return after a summer on the sidelines

Buyers return after a summer on the sidelines with searches up 7% – but buyers need an extra £18,200 to keep mortgage payments flat   Clear signs the autumn bounce is starting – the number of people searching for homes to buy up is 7% YoY – it is a national rebound with more people…
Read More →