Commercial mortgages may be affordable as interest rates expected to stay low

01 November 2010

Written by Jeni Browne

Commercial mortgages may be remain easier to repay, as one expert has predicted interest rates will not rise at the Bank of England's Monetary Policy Committee meeting later this week.

Michael Baxter, editor of InvestmentandBusinessNews.co.uk, said he expected the base rate to stay at its historic low of 0.5 per cent for "a long time".

However, he believes further monetary easing is likely, although he does not think this will bring a lot of benefit to the UK economy.

"All the money that the Bank of England is creating is sitting idle," he explained.

However, were the funds that have been dedicated to monetary easing used to buy bonds in banks "that are advertently geared towards lending towards business", QE could do more to support the economy, the specialist asserted.

The Bank of England's Monetary Policy Committee last met on October 7th and their next talks are scheduled for November 4th.

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