The Bank has to balance keeping interest rates at a level which helps keep inflation down. Inflation is currently 3.3% - obviously higher than the Government’s 2% target.
However, industry experts say the Governor may have to bring rates down quickly if the downturn in the economy continues and gets worse.
There is currently no let up in the doom and gloom surrounding the mortgage market and related industries. As well as job loss fears, higher living costs, and general lack of confidence in the market, all the headlines this week have been about how low house prices will plummet.
It will be interesting to see if any of the Bank of England Monetary Policy Committee members voted to lower interest rates. I’ll keep you posted.
