Peter Rollings commenting on the MPC decision to cut rates today
Thu 04 Dec 2008
This is a kneejerk reaction from the authorities - it doesnt matter how low interest rates go if banks continue to hoard their cash. I dont want to seem ungrateful, but interest rates mean very little compared to the amount of money in the mortgage markets this is the lynch pin for the property industry. Without movement in the housing market, the whole economy suffers.
Interest rate cuts show willing from the Bank of England but MUCH more important is making more money available as soon as possible. There are plenty of willing buyers its now a matter of getting banks back in a position to offer mortgages again.