May 11, 2009
Interest Rates On Hold
The decision to keep interest rates at 0.5 per cent yesterday was unsurprising, according to the Building Societies Association (BSA).
Indeed, many economic commentators have suggested that the Bank of England's monetary policy committee (MPC) will keep the base rate at the same level for the rest of the year.
Reflecting on what it means for the industry, the BSA said that leaving rates as they are "does nothing" to allow lenders to attract new deposits, which can consequently be used for mortgage funding.
The Royal Institution of Chartered Surveyors (Rics) used yesterday's MPC announcement as an opportunity to comment on the property sector.
It said that hopes that the Bank's asset purchasing scheme could help stimulate the market.
A statement from Rics read: "That is one vital way to allow the recent increase in buyer enquiries to translate into an increase in sales and may help to lift the housing market out of its depressed state."
Source : Rman
