For borrowers the news that interest rates will likely continue to be lower for a bit longer could help them further plan for the future. The uncertainty of Brexit is being blamed for the need to keep interest rates low for the unforeseeable future according to the Bank of England. There was also news that a recession is not likely for 2019, but the UK economy and the global economy are still in question as for what is in store for 2020.

The Bank of England’s Monetary Policy Committee (MPC) has kept the standard base interest rate at 0.75%.

The MPC warned that a no-deal Brexit could have a negative impact on the UK economy with weaker growth, higher inflation, and a loss of value of the pound. There was also a warning that interest rates might move up or down with a no-deal Brexit.

The UK economy declined by 0.2% in the three months to June according to the Bank of England, and there is growth expected of 0.2% for the third quarter of the year. This is a cut from the previous forecast of growth of 0.3% made in August.

The minutes of the MPC meeting stressed that the economy would behave much different with a Brexit deal and in that case there would likely be a need to increase interest rates over the next three years.

As interest rates remain low, borrowers, including home buyers and homeowners, seeking mortgages and remortgages will continue to have attractive deals to choose from in which to find substantial savings and long fixed term deals that could give peace of mind in the economic uncertainty and possible interest rate increases in the years to come.