Peter Rollings commenting on today's decision from the Bank of Englands MPC
Thu 10 Jul 2008
"The MPC could have got away with a cut in base rate today but choosing to hold rates was the safe move with inflation running at over 3%. But next month they must cut rates. With the number of property transactions down 50% in central London already, and prices down 15%, a rise in rates would be catastrophic. Inflation might be a threat, but a property market stall would be more damaging long term.
On the plus side, buyers in London who are able to raise finance will find some excellent bargains at the moment. With prices in London reacting so sharply to the lack of mortgage finance available, there is real value in this market."