In a move likely to encourage the property market, the Monetary Policy Committee (MPC) has announced the reduction of the Bank Rate by 0.25 percentage points to 4.25%. This decision has been made after two years of falling inflation rates (currently at 2.6%) as the country continues to recover from external shocks. While progress has been made, the Committee are sure to remain focused on reducing the rate of inflation to its target of 2%.
Jason Tebb, President of OnTheMarket, comments on the interest rate reduction:
“As expected, the Bank of England has reduced interest rates by a quarter point to 4.25 per cent. With inflation falling in March, indicating that it is seemingly under control even if still above the 2 per cent target, the rate setters had no real reason to hold rates again.
“A reduction in interest rates sends an important message to buyers and sellers, enabling them to plan ahead with more confidence. It should ease affordability and boost the housing market, leading to an improvement in activity and transaction levels.
“With the stamp duty concession ending in March, expected further rate reductions should give the market welcome added momentum as the year progresses.”
