Base Rate to rise in May so fix now? -- 1 March 2011

Welcome to MFB-TV on Tuesday 1st March. There’s a wealth of economic data out there on which the Bank of England’s MPC committee will make their announcement next week on whether Base Rate moves. Firstly GDP for the last quarter of last year dropped by -0.6 per cent from the initial figure of -0.4 per cent. Also feeding into this mixture, is the Nationwide Housing Index which shows slight improvement in February of +0.3 per cent, thereby confuting the pundits who were talking about a 10 per cent property valuation reduction this year. In the broader market HMV are coming in on low profit forecasts and have lost 20 per cent of their share price today. So the jury is out on whether Base Rate will move any time soon and the most popular belief now is that nothing will happen until 1st May. But now is the time to look at fixed rates having had three fixed rates all between 5.5 and six per cent to cover three, four and five year products. So now is the time to ask us questions and position yourself ready for when Base Rate moves up. As ever: 0845 345 6788 for your enquiries.

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