Housing round up: Interest rates remain unchanged whilst house prices rise

Housing & mortgage round upIn a week packed with housing news, the Bank of England have decided to leave interest rates unchanged, although more money will be pumped into the economy. In other news the Halifax house price survey has found that prices rose in January, whilst mortgage approvals rose in the first month of the New Year. Are you looking for ...

Interest Rates remain at 0.5%

As expected the Bank of England’s Monetary Policy Committee (MPC) has decided to leave interest rates on hold and will not restart quantitative easing (QE) measures. Although the decision was expected, the Bank is facing increased pressure as inflation remains above its target level. In November CPI (Consumer Prices Index) stood at 3.3%, significantly above the Bank’s 2% target. CPI has been at least 1% above the target level for the past 12 months. Two members of the MPC have previously indicated that they favour a change to policy, Andrew Sentance has advocated a rate rise to try and push down inflation and Adam Posen has previously voted for additional QE measures. Both have been out voted by other members of the MPC.

Interest rates on hold for the 20th month in a row

In a widely expected move the Bank of England’s MPC (Monetary Policy Committee) has left interest rates on hold again. Furthermore no new additional Quantitative Easing QE) has been announced. The news comes on the day when the Halifax reported house prices fell by 0.1% in November. Although the decision will not come as a surprise, with CPI (Consumer Price Index) at 3.2% the Bank will need to keep a careful eye on inflation in months to come and interest rate rises may be needed to steer inflation back towards the 2% target. The news will be greeted positively by mortgage holders and businesses, ...