Bank of England base rate remains at 0.25%
The Bank of England’s Monetary Policy Committee (MPC) has voted unanimously to keep the base rate unchanged at 0.25%, marking the sixth straight month at the historically low rate.
The Bank of England’s website stated that: “The MPC had observed at the time of the UK’s referendum on membership of the EU, the appropriate path for monetary policy depends on the evolution of demand, potential supply, the exchange rate, and therefore inflation.”
The Bank of England also raised its expected economic growth of 2.0pc for 2017, compared with the previous forecast in November 2016 of 1.4%, stating: “Domestic demand has been stronger than expected over the past few months, and there have been relatively few signs of the slowdown in consumer spending that the committee had anticipated following the referendum.”
Andrew Turner, CEO of Commercial Trust, said of the continued rate freeze:
This has come as no surprise. With Brexit negotiations now well underway, the Bank of England has decided to keep things exactly the same in order to not upset a delicate time in the UK’s economy. However, with the increase in the UK growth forecast for this year, the MPC can loosen or tighten their monetary policy, in response to economic changes. This is something we will keep a close eye on, in order to inform landlords and investors of any changes that could affect them.
This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.