subject: Contractor base rate hold, called for [print this page] Contractor base rate hold, called for Contractor base rate hold, called for
The EEF, who represents manufacturing in the UK, and the British chamber of commerce have both called for a base rate hold on Thursday. They are claiming that uncertainty and instability will hinder the recovery and slow the little growth we are seeing.
The EEF chief economist, Lee Hopley, stated:
"The full extent of fiscal tightening has yet to make its mark and growth is dependent on a pick-up in private sector contributions from trade and investment. Interest rates must remain on hold until much stronger evidence emerges of a healthier economy."
Chief economist at the British Chambers of Commerce (BCC), David Kern, commented:
"As long as there are no signs that the UK is at risk of a wage-price spiral, the MPC must hold its nerve."
"The worsening situation in the eurozone, Japan and Libya could have a negative effect on the global economy, which reinforces the case for the MPC to wait. The case for holding fire on interest rates for now is supported by ongoing serious uncertainties and concerns about the underlying strength of the UK economy and its ability to withstand the increasing fiscal squeeze".
Contractor Mortgages will be effected by base rate changes, so it is always big news when there are changes to it. The Monetary Policy Committee (MPC) will meet this Thursday, we will be giving our predictions and covering the announcement in full.
We have early indications of a 23% growth in March house sales. This makes it the second month on month growth figures in a row.
Agency express, who provided these figures, pride themselves on the speed with which their figures are released. The obtain their data sets by measuring for-sale sign activity, which they believe provides them with the earliest possible indication of growth in the housing market, and they may be right.
Managing Director of Agency Express, Stephen Watson, commented:
"This latest set of data paints an encouraging picture for the housing sector."
"Not only has there been a significant uplift in new For Sale' listings and house sales but the trend over the last two or three months indicates that this might be sustainable."
These statistics provide a valuable indication of contractor mortgage activity, which would have seen similar growth at the beginning of this year. This uplift in activity could lead to a good year for contractors, who will undoubtedly want to capitalise on the opportunities that come there way.
