Following last months emergency budget the Bank of England’s Monetary Committee has decided to keep the base rate at 0.5.% for the sixteenth month in a row. Five year swap rates have fallen to around 2.5% suggesting the market is not expecting a future imminent increase in the base rate.
News
RICS report house prices in London rise in May
June 21, 2010 – 9:08 pm
The RICS UK Housing Market Survey found that 57% of London Chartered Surveyors reported that they had noticed a rise in London house prices in May. This was up from 55% in April.
Fiscal Watchdog downgrades UK economic growth to 2.6%
June 14, 2010 – 2:43 pm
The new independent fiscal watchdog has downgraded UK economic growth from the 3 to 3.5% estimate given in Labour’s budget by Chancellor Darling, to 2.6% in 2011.
Base rate remains at 0.5%
June 13, 2010 – 7:57 pm
The Bank of England’s Monetary Committee has announced the base rate will remain at 0.5% for the fifteenth consecutive month. This was in line with market expectations. Economists are waiting for George Osbourne’s emergency budget announcement before predicting when the base rate will rise again.
