10
Apr
Rate decision 'not sufficient alone'
The decision by the Bank of England to lower the base rate of
interest has been welcomed by the Council of Mortgage Lenders
(CML).
Such a move ought to bring "greater stability" into the sector if
it is matched with more liquidity provided by the bank, the CML
claimed.
Moreover, successive rate cuts may offer more support to the
housing market, said director general at the CML Michael
Coogan.
He suggested that more co-ordination may prove that officials are
dedicated to helping out with issue.
"We would like to see another base rate cut next month partnered
with more liquidity auctions, of higher amounts, over longer terms
and available to a wider range of institutions," he
commented.
He said that in a "dysfunctional" point in history, a cut on its
own will not suffice.
Today the Bank's monetary policy committee cut the base rate of
interest to five per cent.