Commercial Finance Specialists

The base rate of interest is unlikely to change after the Bank of England's Monetary Policy Committee (MPC) meeting today (March 4th), one research company has predicted, which may affect those seeking sources of finance for property investment.

When the MPC met last month, it decided to keep the base rate at its historically low level of 0.5 per cent, while maintaining the stock of asset purchases financed by the issuance of central bank reserves at £200 billion.

Vicky Redwood, UK economist for Capital Economics, said that the organisation believes rates will remain at their current level for the rest of the year and probably into 2011.

"They will want to wait until inflation is likely to have peaked and then is falling again and they will want to see how the recovery is faring," she added.

"Give it another three to six months and then they could be doing more."

Figures from the Office for National Statistics published at the end of last month showed that gross domestic product increased by 0.3 per cent in the fourth quarter of 2009.