Bank of England Meeting of Monetary Policy Committee Held Today
Today’s Super Thursday at the Bank of England could lead to the answer of when interest rates will be rising. The monthly Monetary Policy Committee is taking place today with the minutes and inflation report quickly becoming high priority for those close to the UK housing market. A more accurate estimate of when the base rate will be increased could come out of the Central Bank’s meeting today.
Most experts in and around the housing market believe today’s gathering will not result in the movement of the base rate at all, which has been at 0.5% for more than six years now. However, some speculate the base rate increase could garner at least one more supporter during today’s meeting.
With the strong economic conditions which are dominating the headlines currently, many experts believe the time is now for a hike in the base rate. Others argue that inflation is still under control and a hike would still be premature at this time.
During the October meeting, the MPC voted down an increase of the base rate by an 8-1 margin. Ian McCafferty was the lone MPC member to vote for an increase. He voted for the rate to be increased from 0.5% to 0.75%.
Even though robust growth is currently taking place in many areas of the housing market, experts think the MPC will not consider raising rates until at least the end of the first quarter of next year. This will not only extend the advantage of low interest rates to borrowers, it will also extend the misery felt by all savers.