BoE interest rate decision 'meets with disapproval'

Housing market experts have today (May 8th) expressed their disappointment over the Bank of England’s (BoE) interest rate decision. In news that may be of interest to those looking to buy a house in Scotland, the BoE’s Monetary Policy Committee has decided to maintain the official bank rate paid on commercial bank reserves at five per cent. According to the Royal Institution of Chartered Surveyors (Rics), this may not be good enough to rectify the current economic chaos. “The Rics is disappointed that the MPC chose to leave the base rate on hold today,” says Simon Rubinsohn, chief economist at Rics. “Housing transactions have collapsed, consumer confidence has sunk to its lowest level since 1992, the service sector appears close to stagnation … and the retail sector is under immense pressure,” he added. Furthermore, SmartNewHomes.com has commented that the UK is in need of another base rate cut, going on to claim that lenders should take up the BoE liquidity scheme in order to boost UK lending.