05-03-2008
NAEA calls for drop in interest rates
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Britain's National Association of Estate Agents (NAEA) has called upon the Bank of England's monetary policy committee (MPC) to reduce interest rates.
The organisation believes an interest rate reduction to be necessary on the grounds that there is currently a weakness in the confidence levels of the UK housing market that the MPC should react to in order to prevent the market from "stalling".
However, the organisation stressed that current conditions are not at a level of seriousness that could be considered dangerous.
Presently, interest rates are 5.25 per cent.
"We are seeing people squeezed as a result of the credit crunch, as the banks expect bigger deposits and better credit ratings," said Peter Bolton King, chief executive of the NAEA.
"In addition, nervous banks are keeping their interest rates well above the base rate."
The Bank of England's MPC will next announce its interest rate decision on March 6th.
