Mortgage Introducer: BoE votes in favour of forward guidance
Tue 06 Aug 2013
The Bank of England's Monetary Policy Committee has voted in favour of providing forward guidance regarding its future monetary policy, writes Ryan Fowler.
Under the new policy of forward guidance the BoE will periodically promise to keep interest rates at a particular level.
As such the MPC confirmed that it intends to keep interest levels at the current level of 0.5% until unemployment drops below 7%.
Peter Rollings, CEO of estate agent Marsh & Parsons, added: "With his statement today Mark Carney has given the UK's housing market a significant boost.
"The London market, in particular, is presently underpinned by rising positive sentiment due in part to the Government's Funding for Lending Scheme and the Help to Buy initiatives as well as strong demand from home and abroad."
"Growth in the country's GDP, reduction in unemployment and a feeling that we are finally out of the economic badlands means that the market can now be assured of certainty as far as interest rates are concerned."
"This is a highly important statement which will allow lenders to offer attractive fixed rate deals to potential buyers and will surely lead to greater demand and activty in both resale market and provide a fillip for first time buyers."
"The Governor is implicitly saying interest rates will not rise until 3/4 million more people are in work. This will give the market across the UK much welcome stability."