Landlords and property investors predict base rate rise
News Category: Industry News
Published: 09-Oct-2009
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Landlords and property investors expect slight rises in the base rate over the next year, according to a survey.
Research by property portfolio managers the Young Group found that residential property investors think rates will reach around 1.2 per cent in 12 months time.
But yesterday (Thursday 8th October 2009) the Bank of England announced it was holding the base rate at 0.5 per cent for the seventh month in succession.
The Bank's announcement followed a predicition by an economic thinktank that the base rate would not rise during the whole of 2010.
Benjamin Williamson, an economist at the Centre for Economic and Business Research, said his organisation expected the Bank of England to maintain its loosened monetary policy over the course of next year.
"Partly to counteract the expected sharp fiscal contraction, but also because the recovery does remain weak, so they have got to keep borrowing costs down," he said.
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