Commenting on the rate cut, CML Director General Michael Coogan said: "The fact that the Monetary Policy Committee have decided to cut interest rates confirms that they do not see the current state of the housing market as a barrier to taking measures to benefit the wider economy.
“The Bank's forecasts suggest a slowing down in house price growth to zero over the coming year, and although we expect to see positive growth continue, we firmly believe that the housing market is achieving a natural slowdown. So this rate cut is unlikely to further stimulate the demand for mortgages. Lenders will be watching the markets and considering funding issues in deciding how to react to today's rate cut."
