Greycoat Real Estate Asks What Is Going On With The Interest Rates?
For now, the Bank of England is leaving interest rates alone. However, they did not arrive at that decision easily, according to Greycoat Real Estate. Members of the monetary policy committee were not in agreement.
Two members wanted to raise the rates, while one wanted to cut rates. The remaining members voted to keep the rates the same. Greycoat explains that the difference of opinion could be seen as a sign that a rate cut is on the horizon.
However, Greycoat Real Estate states the rate cut may not happen for a few months. It is believed when the rate cuts do come, rates will drop to 4%.
Greycoat Real Estate states it is not surprising that rates are staying the same, but it is not all bad news. Most people would welcome a drop because it would help increase activity in the housing industry. The Bank of England needs to be cautious, though. They do not want to do anything that would cause inflation to rise.
The no rate hike is a plus for those looking to purchase a home for the first time, states Greycoat Real Estate. At the same time, there is a call for the government to do more to control inflation. Controlling inflation will help to drop interest rates and make mortgages more affordable.