MPC hints at interest rate standoff

The minutes from the latest meeting of the Bank of England's Monetary Policy Committee (MPC) appear to show that a cut to the base rate of interest will not take place this year.

[UKPRwire, Mon Nov 26 2007] According to the minutes, seven members voted against a cut in November and it appears that the majority of them are in support of maintaining the 'wait and see' approach.

Mortgage expert John Charcol said that the MPC is yet to be convinced that the economy is slowing.

"The minutes of the last MPC meeting show that despite external calls for an immediate cut in interest rates, the majority of committee members felt that there is still time to wait and see whether the economy is really slowing to the degree needed, before taking action and cutting rates," said Drew Wotherspoon from the firm.

High interest rates are undoubtedly a key factor behind a slump in the number of people entering the property market.

If rates remain at their current six-year high level of 5.75 per cent, it will become increasingly difficult to find someone to buy your property as potential buyers are put off from taking out a mortgage.

Fast property sale expert Julian King comments, "Regardless as to whether there will be a cut in interest rates, the bank's own cost that have increased since the Northern Rock fiasco is costing the homeowner.

"Banks will always pass charges to the customer and this is happenning across the majority of lenders already. There is very little light at the end of the tunnel.

"Homeowners looking for a quick property sale to solve any financial issues will also find their hopes dashed, as their sale is met by a lack of buyers.

"People needing a quick sale will need to look beyond the traditional, draconian, open market route".

Mr King is a director of National Homebuyers, the UK's leading fast property purchase firm. The Sussex-based busines guarantees to make an offer to purchase any property in the UK for vendors who need a quick cash house sale.

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