"> How long can the Bank of England hold interest rates at 0.75%?
Mortgage Market News
Mortgage Market News » How long can the Bank of England hold interest rates at 0.75%?

How long can the Bank of England hold interest rates at 0.75%?

The Bank of England has today announced its plan to keep interest rates on hold at 0.75%, but how long can the Monetary Policy Committee hold out for? With two thwarted Brexit deadlines behind us and inflation sitting at the lowest rate since 2016[i], the Committee’s ‘wait and see’ approach can only last for so long before a rate cut will be deemed necessary for the health of the UK’s economy.

Interest rates were set at 0.75% back in August 2018, more than two years after the Leave campaign won the EU referendum, by which time it was considered most Brexit-related price rises had taken effect. Since then, the Bank has held fast as it waited to see the outcome of Brexit, but with the UK’s departure from the EU still unresolved there is now further uncertainty with the country going to the polls in December to choose a new government.

Those feeling sore about Brexit can perhaps gain some perspective from the global picture; the US has cut its Federal Reserve rate twice already this year, China’s central bank has lowered rates and the European Central Bank has launched its stimulus programme to cut the cost of borrowing across the Eurozone.[ii] Therefore it’s not just the UK’s economy which is slightly lacklustre.

From our perspective, it would not come as a shock if we were to see a rate cut early next year, once the dust has settled from the festive period and the General Election gives a stronger perspective on the future of the UK  with – or without – a Brexit deal. As always, if you have concerns about interest rates or any other aspects of borrowing, please don’t hesitate to get in touch with us. We’re always on hand to offer guidance, backed up by the latest industry insight and product offerings.

 

[i] https://www.bbc.co.uk/news/business-12196322

[ii] https://www.theguardian.com/business/2019/sep/27/bank-of-england-hints-at-interest-rate-cut-even-without-no-deal-brexit

Return to the Latest Market News

Latest Articles/News

Case Studies

According to the Office for National Statistics, by 2066 the number of UK r…

Latest/Related News

It’s safe to say that 2020 has been a challenging year for many, but the …

Press Release

The team at largemortgageloans.com has collectively been nominated for thre…

Press Coverage

Lock down your finances for the coming storms…

LML Brochure

Download our brochure to find out more about largemortgageloans.com and what we can offer

Click to Download

Sign Up

Subscribe now, to hear from us on the latest mortgage market news, products and services.

Client Testimonials

Close

Live chat with
our team now

Chat