Countrywide comment on MPC base rate decision

Countrywide

Thursday, August 4, 2011

Commenting on today's decision by the MPC to leave the base rate unchanged for the 29th consecutive month at its lowest ever rate of 0.5% since March 2009, Grenville Turner, Group Chief Executive of Countrywide, the UK's largest mortgage broker and property services Group said:

"The UK economy continues to face considerable domestic challenges and also from Europe and the impact of the uncertainty generated by the US budget position. Both the CBI and the National Institute of Economic and Social Research have downgraded their own growth forecasts for 2011 to 1.3%, which highlights the overall vulnerability of the UK economy.

"However, the housing market remains more robust than many predicted or give it credit for as both transactions and sale prices are holding up. With competitive remortgage rates on offer, the majority of homeowners are considering whether to stay on variable rates in the coming months or move to the increasingly competitive rates on offer from lenders .

"It is essential that interest rates stay low until we see the sustained signs of recovery, with next week's inflation report providing a much clearer indication of how the market is likely to fare throughout the final half of the year."

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