MPC to make interest rate decision

Posted: 10 Sep 2009 09:14:02 GMT

The Bank of England interest rates decision for September will be made later today, with many economic commentators predicting there will be no change for the sixth month in a row.

Having brought the cost of borrowing down to a record low of 0.5 per cent in March, the Bank's monetary policy committee (MPC) has maintained this base rate ever since.

It had been hoped that low interest rates would encourage people to buy property - and a number of housing industry organisations such as the National Association of Estate Agents have suggested the recent upturn in the market is partly down to this.

Earlier this week, BDO Stoy Hayward released a report that indicated the MPC is likely to keep interest rates at 0.5 per cent until the final quarter of 2010.

According to one of the company's partners, Peter Hemington, it is "almost inevitable" that the Bank's monetary policy will remain similar for the foreseeable future.


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