Is a UK base rate cut on the cards?

[Nicholas Wallwork]

Despite the fact that Mark Carney, the Governor of the Bank of England, was openly discussing a potential rise in UK base rates just a few months ago, the situation would appear to be changing. David Blanchflower, a former member of the Bank of England’s monetary policy committee, has been waxing lyrical over the weekend

Click to Read The Full Story and Add you Own Comments to Continue reading...

 

[nmb]

Just a few weeks ago I would never have believed that a possible cut in UK base rates was on the cards. However, over the last few weeks the talk has been relatively negative on the worldwide economy and the UK situation. I would therefore not be surprised to see a reduction in UK base rates sooner rather than later and further liquidity operations from the Bank of England.

It also now looks as though the US Federal Reserve jumped the gun by increasing US base rates - will they be forced to reduce rates in the short to medium term?

 

[Ricky Bhurji]

I have said for two years that this would happen!

 

[nmb]

What damage would an increase in US base rates do to a fragile investor confidence in the real estate market?

 

[firsttimebuyer]

I hope interest rates stay low for a long time to come otherwise how will I get on the property ladder?

 

[nmb]

Even though the Bank of England had suggested UK base rates could rise in the short to medium term these comments have been updated and it is unlikely base rates will rise before 2020. There is even talk of further base rate reductions in the short term.

 

[lookinginvest]

Is now the best time to take out a mortgage with interest rates so low?

 

[Ricky Bhurji]

@lookinginvest Without question, yes!

 

[nmb]

What kind of impression would this give to investment markets in the UK? Any further reduction in UK-based rates would prompt fears of desperation. It is amazing to think how well the UK property market has performed since 2008 although it has to be said that the bubble of low interest rates has helped immensely.