Rate Increase Not Good For First Time Buyers

Interest Base Rates Yo_Yo

Published / Last Updated on 22/02/2007

Bradford and Bingley have suggested that the base rate will fall within the year and will be back to 5 per cent. Although they have said that they expect another rise in March or April. These comments have been made following the revelation that the decision to increase the base rate was split 5-4 by the monetary policy committee, which indicates that there is confidence that inflation will come down.

The Governor at the Bank of England commented that it was difficult to judge when and by how much the inflation will fall over the next year.

Our view

We totally agree with B and B. We have been predicting a further rise in the next few months and a fall towards the end of the summer.

Rate Increase Not Good For First Time Buyers

Venture Capital Trusts Demand To Fall