Friday 19th October 2007
Minutes of the Bank of Englands October monetary policy committee (MPC) meeting state that homeowners are less likely to suffer as a result of the credit crunch.
The Bank observes that financial institutions are more likely to lend in the form of secured loans over the coming quarter.
Responses to the recent Credit Conditions Survey revealed that lenders have little intention of reducing the availability of such products.
"Conditions facing the household sector appeared, for the moment at least, to be less affected by the financial turbulence," the Bank observes.
"Banks reported in the Credit Conditions Survey that they did not expect to reduce the availability of credit to households over the next three months."
Despite this, not all of the MPC members were agreed on the strength of the economy this month.
Professor David Blanchflower of the National Bureau of Economic Research voted for a decrease in the base rate, but was outvoted by the remaining committee members.
The move represented the first time in three months that the Banks interest rate decision has not been unanimous among the nine MPC members.
©
Fill out a form to speak to an advisor about what type of loans might be right for you.
