The Bank of England today decides to leave interest rates on hold, but the bank’s chief economist votes for a rise. The Monetary policy committee’s vote is split!
The Bank’s chief economist Andy Haldane voted to raise borrowing costs to 0.75%, along with fellow committee members Ian McCafferty and Michael Saunders. But they were outvoted by the remaining six members of the MPC who all voted to leave rates on hold for now.
Angus Stewart, Chief Executive of Property Master, the digital start up that uses algorithms to match the requirements of individual landlords against the entire buy-to-let mortgage market, said of today’s Bank of England Monetary Policy Committee decision not to raise the base rate:
“Today’s decision by the Monetary Policy Committee to hold rates will not come as a surprise to many. Given a raft of weak economic data over the past few weeks plus the continued uncertainty over Brexit, most commentators were expecting a rate rise to wait until later in the year.
Mr Stewart continued:
“Our recent June Mortgage Tracker which follows rates and fees from 18 of the largest lenders in the buy-to-let market showed that the cost of popular buy-to-let fixed rates deals has continued to fall since the start of the year.
“Five-year fixed rate mortgages have been particularly competitively priced with the monthly cost of borrowing a typical amount of £150,000 falling between £10 and £22 compared to the cost if the loan had been taken out in January.
“Today’s news, however, does not necessarily mean such competitive rates are here to stay. A base rate rise is certainly on the cards at some point so landlords who are looking to borrow or refinance may need to move very fast indeed.”