The expectations of a hold on the standard base interest rate by the Bank of England’s Monetary Policy Committee (MPC) has been confirmed.  The MPC voted in their February meeting to hold the interest rate set by the regulators at 0.5% for another month.  The minutes from the meeting will be released later in the month and will reveal how close the interest rate was to being changed.  No members were expected to vote for a change but the issue which was questionable was if any members would consider the need for further quantitative easing (QE).

Meanwhile, the new Governor to come in and take Sir Mervyn King’s position in July was being questioned by MPs while the MPC was meeting.  Mark Carney will be taking over the reins from Sir Mervyn on July 1 and will head the Bank of England after having led the Bank of Canada.  The Bank of England is expected to be run more sternly when Carney takes over.   

The MPC concluded the meeting with no change to the interest rate and no change to QE.  This is as it was expected a “wait and see” meeting.  The UK economy may have slipped for a third time into recession.  The hope is that the boost to lending that has occurred from the Funding for Lending Scheme and the drop in the price of sterling will have aided the economy despite the looming fear of another contraction in economic growth.

Despite the recession warning there is a strong optimism among those associated with the housing market and lending.  Consumer confidence in the housing market and their ability to secure low interest mortgage deals is helping to boost movement of the property ladder.  Remortgages are also very attractive and lending is easing for homeowners.  Just a quick glance at the offers from lenders reveals that they are staying committed to the effort to keep lending cheap and flowing to borrowers.  This has long been needed and despite the possible lack of economic growth in the end of 2012 there seems to be a positive outlook for the near and far future ahead.