Bank of England ratesetter backs rate hike
Summary
A Bank of England Monetary Policy Committee member has signalled support for a possible near-term interest rate rise, citing the risk that inflation becomes entrenched. The article notes that mortgage rates have already risen and that the housing market has slowed, with Nationwide reporting a monthly fall in house prices in May.
Why it matters
Higher borrowing costs can affect mortgage affordability, transaction volumes and valuation assumptions across the residential market. Surveyors may see knock-on effects in buyer demand, price momentum and lender sentiment if rates rise further.
Key points
- MPC member Megan Greene said the case for higher rates has strengthened.
- The next Bank of England interest rate decision is due on 18 June.
- Andrew Bailey said market borrowing costs have already tightened policy in effect.
- Rising mortgage rates and energy costs are contributing to a slower housing market.
- Nationwide reported the first monthly house price fall of the year in May.
Organisations:
Bank of England, Monetary Policy Committee, Nationwide, The Times, The Negotiator
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