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Bank Base Rate – Changes May Be Further Away

14.01.16

The Bank of England have yet again left rates unchanged at the 0.5% level which has now been at that level since March 2009.

The voting went as last time with only one member of the MPC voting for an immediate increase to 0.75%.

Whilst the actual rate decision itself was a foregone conclusion, this was always going to be about the minutes and their tone.

Given current global issues, especially in China and the free-falling oil price, as well as some poor manufacturing figures and downward revisions of UK GDP, it would seem that inflationary prospects will continue to be weak.

This has led to many pushing out further the date of a future rate rise rather than hurrying to follow the US.

As we have seen, especially with the current Governor, things can change quickly and the tone of MPC members will be carefully watched over the next few weeks.

The big question remains, will we see any rate changes this year at all?

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Andrew Montlake

Written by Andrew Montlake

Andrew Montlake, better known as Monty, began his journey with an Hons degree in Economics & Politics before starting in the mortgage industry in February 1994. As a main founder of Coreco in 2009, he successfully grew the brand, marketing, and communications, and was made MD in 2019 focussing on the overall vision, strategy, and culture of the company. As Coreco’s media spokesperson, Andrew can often be seen or heard on TV and radio as well as regularly commenting in the national, local, and trade press. He is the author of this acclaimed Mortgage Blog and is well-known for his social media, podcasts, and public speaking. Andrew is now proud to serve as Chairman of the Association of Mortgage Intermediaries, (AMI) as a cheerleader for the Mortgage Industry as a whole and continues to work at the coal face, writing mortgage business and advising clients.

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