Commercial Finance Specialists

Commercial mortgages could be affected by the Bank's decision to keep interest rates at 0.5 per cent.

The Bank of England has decided to keep the bank rate at 0.5 per cent and maintain the size of its Asset Purchase Programme at £200 billion, those looking at commercial mortgages may be relieved to discover.

In response to this discussion, advisor John Charcol's Ray Boulger claimed that this was an unsurprising decision on both fronts.

He suggests that predictions that the recent rise in inflation is temporary and will later fall back to the two per cent target have removed the need to take corrective action.

"The next government will have no choice but to introduce stringent fiscal measures after the election and these are almost bound to increase unemployment in the public sector," he explains, suggesting that this will put a downward pressure on inflation.

Later this month, the Monetary Policy Committee will publish the minutes of its decision and its inflation report will also be released during February.