Homeowners to be hit by rates freeze, experts predict

05 August 2008

British homeowners thinking of making a move to a larger property may have to resign themselves to sitting tight for the time being as experts predict that the Bank of England is not about to do them any favours any time soon.

According to a poll carried out by Adfero, a majority of economic forecasters expect interest rates to be held at five per cent when the Bank's monetary policy committee meets this Thursday.

Indeed, of the six questioned, all expressed a belief that rates will be frozen for the time being at least, with the need to curb the rate of inflation seen as the major factor behind this.

"I think the most likely decision will be to keep interest rates unchanged this Thursday," said Howard Archer, UK chief economist at Global Insight.

"They've got a difficult balancing act in terms of the economy could be in recession but at the same time elevated price pressures."

Anyone finding themselves having to put a house move on hold and therefore struggling for space might want to look into the advantages offered by safe storage solutions.

ADNFCR-789-ID-18716833-ADNFCR© Adfero Ltd

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