People looking for new homes may find that interest rates are unlikely to increase in the near future, according to an expert.
Alan Clarke, UK economist at BNP Paribas, suggested that there will not be a hike until late 2011.
He explained that this is because the government is proceeding with quantitative easing due to the fact that interest rates cannot be cut.
Mr Clarke stated that if the government could slash interest levels, they would do so.
He said: "For me I don't think we will see interest rates rising during 2010 and during 2011 gross domestic product will be very sluggish, we will be in a soft patch and I think inflation will be very low and that will support holding interest rates very low for probably the whole of 2011 as well."
Last week, the Bank of England Monetary Policy Committee voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5 per cent.
See Also: Property News (6699)
Date Published: 12 January 2010
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