8
May
BSA unsurprised by base rate decision
It was no surprise that the Bank of England's monetary policy
committee (MPC) opted to keep interest rates at 0.5 per cent
yesterday, according to the Building Societies Association
(BSA).
The Royal Institution of Chartered Surveyors (Rics) also suggested
that the lack of movement in the base rate was predictable.
However, the BSA said that the decision to freeze rates "does
nothing" to prompt lenders to attract new deposits for mortgage
funding.
Despite this comment, Nationwide Building Society's latest housing
survey indicated that property prices dropped in April, which could
make bricks and mortar more affordable for those looking to get on
the housing ladder.
Meanwhile, Rics used yesterday's MPC announcement to reflect on the
state of the industry.
The group is hopeful that the Bank's asset purchasing programme
will stimulate market activity.
A statement from Rics said: "That is one vital way to allow the
recent increase in buyer enquiries to translate into an increase in
sales and may help to lift the housing market out of its depressed
state."
