Bank of England holds rates at 0.25%
The Bank of England has held rates at the historic low of 0.25% despite expectations of a further reduction from some quarters.
Back in August the Monetary Policy Committee slashed its forecasts for growth and announced a package of measures to support the post-referendum economy.
The Base Rate was cut by 0.25% to its current level and the Bank and set in motion plans to expand its quantitative easing programme to a total of £435bn.
However speculation that further cut could occur today after a turbulent couple of months.
Since the last meeting of the MPC the Prime Minister has confirmed article 50 will be triggered by the end of March, the value of the pound has fallen sharply and there are increasing signs that inflationary pressures with import prices increasing.
Jeremy Duncombe, director of Legal & General Mortgage Club, said: “The Bank of England’s decision to keep the base rate at 0.25% will be welcomed by the industry.
“Together with Mark Carney’s recent resolution to stay in office until 2019, this announcement will help to maintain stability in the financial markets as the negotiations to leave the EU get underway.
“However, with the first Autumn Statement from a new government just three weeks away, there is still the potential for change in the mortgage market in the short-term.
“Brokers should therefore act sooner rather than later to secure the best possible deal for their customers. While the base rate is still at an historic low, now is a great time for intermediaries to work with their clients to switch products and potentially save them the equivalent of a pay rise. ”