Interest base rate remains at 5.25%

Surprise Interest Rate decision by Bank of England good news for landlords.

The Bank of England' latest interest rate decision is a welcome one for landlords, as its monetary policy committee agreed to keep the base rate at 5.25% today - ending almost 2 years of monthly rises.

The Bank has been increasing rates since December 2021 in an effort to tackle inflation, which is running at 6.7 per cent - far above the 2.0 per cent target rate agreed.

The Monetary Policy Committee noted that since June inflation had fallen much faster than expected to 6.7 per cent in August. At the same time they have acknowledged that there were “increasing signs” that higher rates were starting to hurt the economy. The Committee therefore has kept the rates on hold but also warned that they must remain “sufficiently restrictive for sufficiently long” to get inflation back down to 2.0 per cent.

The news will come as welcome relief to both landlords and renters alike as it had been an odds-on certainty that rates would rise by at least a quarter point. The no-change decision should provide a boost to an otherwise uncertain housing market.

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