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August Interest Rate Statement - Rates held at 0.5%

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Steve Lees, Marketing Director of smartnewhomes.com, comments on today’s decision to keep interest rates at 0.5%:

“The bank has again been wise in resisting the pressure to raise interest rates. While inflation remains a concern, tightening monetary policy at the same time as the coalition is pushing through unprecedented cuts to government spending is an unnecessary and dangerous risk.

“The banks would undoubtedly see a rise in the base rate as a justification for continuing with restrictive lending practices. Since credit-worthy homebuyers are having enough trouble obtaining finance from lenders as it is, and given the vital importance of the property market to the UK economy, keeping interest rates at 0.5% is the only sensible option in the current climate.”

See Also: Press Releases (371), Property News (6701), MPC (8), Monetary Policy Committee (11), Interest Rate Statement (8), Interest Rates (13)