Bank of England Monetary Policy Committee base rate decision

07 February 2013

Peter Williams, Executive Director of IMLA, comments

“Today’s announcement – that the Bank of England (BoE) will maintain its base rate of 0.5% – is a very pragmatic decision and may conjure a somewhat muted or subdued response, but it is nonetheless encouraging that the Monetary Policy Committee (MPC) still judges that the UK economy is set for a period sustained of recovery.

“Likewise it is very good to see that this assessment is line with the findings of our annual survey, which found the majority of IMLA members hold a generally positive outlook for 2013 and the prospects for the UK mortgage market.

“The MPC may not have enacted Chancellor George Osborne’s call for a loosening of the BoE’s grip on monetary policy, but its commitment to the Funding for Lending Scheme and easing of credit conditions will be well received by the wider mortgage lending industry.

“We have already seen £1 billion extra mortgage lending by the major UK lenders in the duration of scheme, compared with the previous year, and no doubt its continuation will act as an important monetary stimulus, helping to give the economy an extra boost on the road to recovery.”

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