The Bank of England has cut the base interest rate by 0.25% today as expected in a welcome shot in the arm to the property market.
Last time, the Bank held the rate at 4.5%, but has reduced it to 4.25% this month in what could be the first in a series of cuts this year.
With inflation still at 2.6%, above the Bank’s target of 2%, and the economy in need of some help to aid growth, the cut was widely anticipated.
Current swap rates, which the Bank’s Monetary Policy Committee (MPC) and Governor Andrew Bailey (main picture) factor into their thinking, also pointed to a base rate reduction.It was a close vote at the latest MPC meeting with a narrow 5-4 majority in favour of a cut.
