The Bank of England has kept interest rates on hold as expected.
The decision by the bank's Monetary Policy Committee (MPC) means rates will stay at their current record low for an 18th month. It suggests the committee does not see high inflation as a serious concern.
Economists broadly welcomed the bank's decision, arguing that low interest rates were still needed to help the recovery in the economy, particularly with cuts in public sector spending expected to hit growth.
"While GDP growth in [the second quarter] was the strongest in four years, the data probably overstated the strength of economic activity," said Nida Ali, economic adviser to the Ernst & Young Item Club.
"And with significant fiscal tightening ahead, growth is likely to slow significantly.
"The MPC made the right decision," agreed David Kern, chief economist at the British Chambers of Commerce (BCC).
I am now fairly relaxed about the mid term prospects for low interest rates and level house prices or better. I just hope that I am not being too complacent. There seems less need to lose sleep worrying about the doomsday scenario.
In January 2010 I found a great house. We could buy it but only if we could complete in 6 weeks. The only way we could possibly do that was rent out our house and get a buy to let loan for the new house. We therefore became reluctant landlords at the mercy of the UK housing market.Everyday the media has news or opinions about house prices and interest rates and these are my only indicators as to whether I am leading my family to financial ruin, bare survival or reasonable wealth and well being.
No comments:
Post a Comment