Interest rates to continue at low levels
Last month Mark Carney, Governor of the Bank of England said the global financial backdrop was ‘unforgiving’ as he insisted that ‘now is not yet the time’ to raise interest rates in the UK.
As it publishes new economic forecasts with concern growing about a new global slowdown and an unsettling referendum on Britain’s place in the European Union approaching, the BoE is likely to stress that it is in wait-and-see mode. He may well signal this thursday when giving out the central bank’s quarterly inflation report that Interest rates could stay on hold for the rest of the year as the economy slows.
The continuation of low interest rates is a benefit to the Housing and Mortgage market, commenting on the latest Bank of England monthly Money and Credit statistical release, BBA Chief Economist Richard Woolhouse said:
“The increase in mortgage approvals and remortgaging provides further evidence that the housing market is in robust health.
“It seems that shrewd consumers are rushing to grab competitive deals amidst uncertainty about when interest rates will shift from their current record lows.”