UK interest rates have been held steady at five per cent by the Bank of England in what appears to be a safety-first approach. The Bank’s monetary police committee decided not to change rates amid fears a cut could mean it would lose control of inflation and a rise might help spark a recession.
Its decision comes after a poll of businesses revealed many now fear a serious downturn is a possibility. In recent weeks some of the UK’s biggest property developers have laid off thousands of workers as the country’s property slowdown continues.
Many property investors and other business professionals will be hoping the bank is preparing to cut rates in future if further indications of a looming recession emerge. Quoted by the BBC, Ray Boulger, of mortgage adviser John Charcol, said:
“With the economic news from nearly all sectors of the economy getting worse by the day, a rate cut is badly needed to help restore some confidence to consumers and reduce the financial pressure on both them and industry.”
Some were more insistent. A statement from Badger Holdings, parent company to Townends & Regents Estate Agents, said it was “incensed” the bank had not cut the rate.
Related posts:
