According to the Head of Knight Frank Finance, the Bank of England’s Monetary Policy Committee (MPC) has decided to preserve the base rate of 0.5 percent and the loan takers are beginning to turn to capped or fixed rate mortgages as increases edge closer.
The Head of Knight Frank Finance said, This decision of keeping the base rate stagnant at 0.5 percent for the 22nd month was very much as anticipated, but the stress for an augment is beginning to mount.
What is Bank of England going to do next keeps the commentators split in opinion, but with inflation snubbing to fall, the majority of people who were forecasting no rise in rate in 2011 now anticipate an augment at some point during the year.
“The statement that the economic recovery seems to have slowed will make the Monetary Policy Committee careful about increasing rates too early, but rising inflation brings its own grave issues that can’t be neglected.
“Uncertainty about what is going to happen to the interest rates is making people to think of their options, particularly with respect to their mortgages. With fixed rates of interest now turning to edge up, now is a fine time to reconsider your borrowing.”
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