The Bank of England’s Monetary Policy Committee has cut Bank base rate to 1.5%, its lowest ever level.

BBR has now been cut in each of the last four months, and is 3.75% lower than this point last year, when BBR stood at 5.25%.
A further cut had been widely expected by analysts, particularly after the minutes of December’s MPC meeting revealed the members of the committee had considered an even larger cut than the 100 basis point reduction they eventually voted in favour of.

However, the move is sure to spark a mixed response within the mortgage market. The Council of Mortgage Lenders has emphasised for some time that the market will only pick up through Government intervention on the lack of liquidity, while the Association of Mortgage Intermediaries yesterday warned any cut would merely be a “distraction” from the real issues affecting the market.

As quoted earlier this in my opinion will have little effect on the market that needs activity, mortgage borrowing and property. This really is a move without results however on the positive side it could be worse we could now have a 1% rate!

We need a period of stability across a number of areas to attempt to stimulate the residential mortgage market, the sterling rate and the interbank lending issues, CAN WE NOW LEAVE THE RATES ALONE FOR A WHILE. Lets hope so.

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