MPC keeps base rate at 0.75%

Jessica Nangle

September 19, 2019

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The Bank of England Monetary Policy Committee (MPC) has decided to keep the base rate unchanged 0.75%.

The last interest rate rise was in August 2018 when it rose from 0.5% to 0.75% and has remained the same since.

The MPC met today to discuss the base rate, and meet every six weeks to decide the base rate and voted unanimously to keep the rate at 0.75%.

Frances Haque, chief economist at Santander UK, said: “The decision to hold rates was widely expected, given the outcome of Brexit is still hanging in the air.

“Although the economic data published so far for the third quarter of this year suggests that a recession should be avoided, many of the fundamentals of growth such as business investment and productivity remain weak, with the MPC clearly sticking to its cautious approach.

“Until there’s more clarity on the final Brexit outcome, it’s unlikely we’ll see a change in rates this year.”

Martijn Van Der Heijden, chief strategy officer at Habito, added: “Interest rates remain relatively low which will be welcome news for those looking to get a good deal on their mortgage.

“This “wait and see” approach from the MPC is something we also see reflected in our own data with a surge in buyers choosing fixed deals for five years or more as they try to “Brexit-proof” their mortgage and lock in the same rate until 2024 and beyond.

“We have also seen positive figures recently on the take up of buy-to-let and first time buyer mortgages, something which has led to lenders offering more competitive products to support people moving.

“However, the fact is, significant barriers still exist for those looking to get onto the housing ladder or move, including the stress and anxiety of the process and complex jargon.

“Keep calm and carry on and the holding of interest rates gives some certainty, but if we want to unlock the door for all homeowners, we need to embrace technology, innovation and focus on the issues facing consumers. There has never been a more important time to seek free, whole of market mortgage advice.”

The next meeting is scheduled on the 7 November.

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