Bank maintains base rate at 5%
5.09.2008
The Bank of England's monetary policy committee (MPC) has chosen to maintain the base rate of interest at five per cent.
Legal and General claimed the move was "no surprise", given that the Bank has to "tread the tightrope between managing inflation and giving borrowers some slack very carefully".
The firm stated that short-term fixed rate mortgage deals are beginning to reduce in price and "things aren't nearly as bad for all borrowers" as it is often reported.
Although first-time buyers may be "struggling", lenders may soon offer higher loan-to-value lending again and the market will "bounce back", Legal and General asserted.
Meanwhile, HSBC suggested inflationary pressures may be starting to ease, which may enable the Bank to cut rates in the near future.
It said this would offer "welcome relief" to many homeowners.
The MPC last cut rates by 0.25 per cent in April and meets again to decide whether to cut them further on September 17th.
Legal and General claimed the move was "no surprise", given that the Bank has to "tread the tightrope between managing inflation and giving borrowers some slack very carefully".
The firm stated that short-term fixed rate mortgage deals are beginning to reduce in price and "things aren't nearly as bad for all borrowers" as it is often reported.
Although first-time buyers may be "struggling", lenders may soon offer higher loan-to-value lending again and the market will "bounce back", Legal and General asserted.
Meanwhile, HSBC suggested inflationary pressures may be starting to ease, which may enable the Bank to cut rates in the near future.
It said this would offer "welcome relief" to many homeowners.
The MPC last cut rates by 0.25 per cent in April and meets again to decide whether to cut them further on September 17th.
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