HomeOwners Alliance logo

Sign up to our newsletter for the latest property news, tips & money saving offers

  • Looking to buy a new home? Start here

Interest rates set to stay at historic low

The Bank of England is unlikely to raise interest rates in the near future, which is good news for homeowners.

The latest minutes of the Bank of England’s monetary policy committee shows that there’s  little prospect of any rise in interest rates in the near future.

All 9 committee members  voted to keep the Bank of England base rate at 0.5%, with none arguing that it should go up, despite concerns admitted by the Bank that it may struggle to bring down inflation as predicted.

The committee even considered taking extra measures to give an extra boost to the economy on top of the asset repurchase scheme currently underway.

Members were said to feel ” less optimistic about the prospects for bringing down inflation than in August based on rising oil and food prices and headwinds from the eurozone crisis”. And as a result, members voted to continue with the asset allocation programme at its current level, and some urged the bank to adopt an additional stimulus package.

So reading between the lines it seems clear that there is no appetite for a rise in interest rates within the Bank of England any time in the near future, which should provide some comfort to homeowners.

Notify of
Inline Feedbacks
View all comments

Looking for fee free mortgage advice?

We’ve teamed up with the UK’s leading fee-free mortgage broker to provide you with expert advice.L&C Logo✓ UK’s leading fee free mortgage broker

✓ Compare 1000s of mortgages

✓ Fully qualified advisers

Find out more >
close popup ×

Before   you go...

If you found this website useful, could you spare a minute to leave us a review?