Bradford & Bingley comments on interest rate freeze

09 December 2004
The Bank of England today said it will not change base rate for the rest of the year.

Almost all analysts predicted rates would be held by the Monetary Policy Committee in December ahead of the decision.

David Bitner, head of product operations at Bradford & Bingley, comments on today's MPC decision: "It was universally expected that the MPC would keep Base Rate at 4.75 per cent. Despite mixed house price indices, all point to a deceleration in the rate of house price inflation and there is real evidence that the Bank of England's strategy for cooling the housing market is working.

"While the debate continues as to whether or not Base Rate has reached its peak in this interest rate cycle, we believe that it has and also think there is potential for Base Rate to fall in the second quarter of next year."

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