Peter Rollings commenting on today's decision from the Bank of Englands MPC
Thu 06 Nov 2008
The MPC has mercifully realised the crucial importance of cutting rates. But: its not going to make any difference to the housing market at all if the banks dont pass this cut onto borrowers.
That banks have raised or even scrapped their tracker rates this morning is hugely demoralising for buyers and homeowners. The banks are covering their backs if they bring mortgage rates down after todays cut it will only be back to where theyve been in the last two weeks. Its not good enough. The base rate cut on its own will improve sentiment, but thats all high street lenders must not thwart the authorities attempts to revive the flagging market.