Jackson-Stops comments on Bank of England’s decision to hold interest rate

Nick Leeming, Chairman of Jackson-Stops, comments on Bank of England’s decision to hold interest rate at 5% as was widely anticipated.

“The Bank of England’s decision to hold rates steady was widely expected but does suggest that bringing interest rates down will be a test of stamina not speed.

“Stubborn inflation over the summer months and Labour’s first fiscal statement fast approaching will no doubt be weighing on the market’s mind; the Bank has opted today to offer stability by exercising quiet caution.

“While further cuts to the base rate would help to remove a number of obstacles for buyers and sellers, what the property market needs above all is certainty.

“A sensitive, gradual, adjustment to the base rate can offer that.

“We are already seeing greater levels of activity within the market, and house prices steadily increasing on a month-by-month basis.

“Across the Jackson-Stops network in August, both instructions and completions were up on an annual basis, showing the immediate impact of Labour’s election victory, offering much needed clarity for buyers, before Government has even had the chance to make meaningful policy change.

“The Bank of England and the property market will be watching closely to what Labour has to say in the Budget next month, hoping that any policy announcements nurture these early signs of recovery.”

Kindly shared by Jackson-Stops