Introducer Today - Tomorrow’s Interest Rate Decision – Stick or Drop?

Speculation continues to mount about the likely decision by the Bank of England’s monetary policy committee when it debates base rate tomorrow.

Harps Garcha, director of Brooklyns Financial said: “A rate reduction in August will certainly boost confidence in the property market, especially after a year of seeing the ‘can being kicked down the road’. But will it be enough to ignite the housing market straightaway? The more probable scenario is an increase in market activity in September, once schools are back.

If this occurs, we can expect to see stock levels rise first, driven by those who have been waiting for rates to drop and are now ready to move forward with their plans. This scenario is even more probable if fixed rates continue their downward trend over the summer. Nevertheless, buyers should remain cautious, take their time in making offers and avoid rushing into decisions, as purchasing a home is a significant long-term commitment.”

Click here to read the full article.