According to the Derbyshire Building Society, the recent 0.25% reduction in the Bank of England Base Rate could be followed by a further cut before the end of 2005. But they do not believe that the rate reduction was an indicator of a significant dip in mortgage pricing.
It is hoped that the new low rate will put a little more buoyancy and optimism into the market, and although this will be a good start, further action will be required.
Our view
Interest rates are likely to fall perhaps once before Christmas.