Interest rates held but August increase seeming more likely

By Lauren Burns

The Monetary Policy Committee (MPC) of the Bank of England voted to maintain interest rates at 0.75 per cent, but the 6-3 vote split is widely considered to signal that an increase is likely in August.

When 3 members of the MPC last dissented in the monthly vote, in June 2017, rates where eventually increased 5 months later in November.  However, it is being widely speculated that an interest rate rise could come as quickly as August if the economy continues to show current signs of recovery. The MPC have indicated that improving economic momentum will increase pressure to increase interest rates.

One of the members who dissented was Andrew Haldane, who is the Bank's chief economist and has never previously voted against the majority view since joining the Bank in 2014. That has contributed to the growing market expectation that interest rates will rise imminently.

Property purchasers and mortgage borrowers will be awaiting the results of the August meeting of the MPC with keen interest, as an increase in rates will undoubtedly cause many home owners in Northern Ireland and the rest of the UK to review their current mortgage.

If you are buying a property in Northern Ireland, or selling or remortgaging your existing home, contact one of the conveyancing solicitors at Wilson Nesbitt for information and advice by clicking here.