Thursday 10th July 2008
There is to be no change in the base rate of interest this month, the Bank of England has decreed.
In their July meeting, the nine members of the central banks rate-setting body, the monetary policy committee, voted in favour of another monthly fix.
July marks the third month in a row when such a move has been made, with quarter-point reductions in February and April the only changes made this year.
The news may be seen as discouraging by some members of the property industry, in light of recent comments from chartered surveyors partnership Cluttons.
Senior partner Richard Cotton said yesterday: "The property industry needs to witness positive action from the Bank of England."
"Maintaining rates at five per cent will not give consumers any confidence in the banks ability to manage this crisis," he added.
Financial services provider Spicerhaart has revealed that homeowners are taking matters into their own hands as they seek some monetary security in the form of fixed-rate mortgages.
Long-term fixed-rate deals, with interest accumulating at a guaranteed pace for four years or more, are now in unprecedented demand, according to the organisations monthly mortgage market monitor.
Variable products, meanwhile, have seen demand fall from 28.7 per cent of the market in January to account for 14.7 per cent of new lending agreed in June.
In last months meeting, the Bank of Englands decision to maintain the base rate was almost unanimous, with the exception of committee member David Blanchflower.
He preferred the option of reducing the rate by a quarter of a percentage point, according to the minutes of the meeting.
This months meeting minutes are due to be published on July 23rd, providing an insight into how the nine members voted this time around.
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