“The latest minutes from the MPC provide a very tangible sign that we are moving to the point where a rate rise is firmly on the cards, with two members of the committee laying their hands on the table and calling for an immediate hike of interest rates as a sign of intent. However, the remainder of the committee is still waiting for the air of uncertainty to clear, suggesting there is not yet enough evidence to justify an early rise, and not least in terms of inflationary pressures. The Bank has clearly signalled any rises would be modest and gradual.
“Recent research from IMLA revealed that one in three brokers expect a rise in rates before the year is out. But the consensus among lenders seems to be that the first increase is likely to occur during 2015, with nearly half expecting to see a rise in Q1 2015*.
For further information please contact:
Ludo Baynham-Herd, The Wriglesworth Consultancy
Tel: 0207 427 1400
Notes to Editors
The Intermediary Mortgage Lenders Association (IMLA) is the trade association that represents mortgage lenders who lend to UK consumers and businesses via the broker channel. Its membership of 41 banks, building societies and specialist lenders include 16 of the 20 largest UK mortgage lenders (measured by gross lending) and account for about 90% of mortgage lending (89.4% of balances and 90.6% of gross lending).