Peter Rollings commenting on interest rates staying at 0.5%
Thu 09 Jul 2009
"This is no surprise - lowering interest rates any further wouldnt work and its not as if the MPC could drop them much further anyway. QE is the answer the market is looking for. Keeping the money supply up is imperative for driving cash through the banks and into the hand of borrowers. The banks must up the stakes on mortgage finance a proper recovery in the housing market wont be possible without it. Having said that, if we maintain the status quo, well begin to see house prices tick up by the beginning of 2010 - although in the capital they may start edging north towards the end of this year."
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