Yesterday (14th July 2016) it was widely expected that the Bank of England would reduce interest rates following the UK’s decision to leave the EU following the recent referendum.
Given the current level of post-referendum nerves, it is thought that by holding rates at 0.5% and reviewing the rates again in August, it will allow a more informed decision to be made as to what measures, if any, may be required to stimulate the economy with the benefit of post referendum market data.
Interest rates have an influence on the already very low mortgage rates and it may be that an interest rate reduction will encourage further buyers to enter the market. Shires Residential will be looking out for the next meeting of the Bank of England in August with great interest.
