A decision by the Bank of England to increase the size of its asset purchasing scheme could boost the flow of finance into the UK marketplace, it has been claimed.
Royal Institution of Chartered Surveyors senior economist Brigid O’Leary said that the move will hopefully “stimulate bank lending”.
This could help to lift the property sector out of its “depressed state”, she noted.
However, Ms O’Leary added that yesterday’s decision by the Bank to extend the quantitative easing programme suggests that the organisation is still “fairly pessimistic” about the outlook for the economy.
It also indicates that the Bank expects “interest rates to stay low for the foreseeable future”, she explained, something that may be beneficial for people struggling to handle debt management.
The official base rate was maintained at 0.5 per cent – the lowest level in history – following yesterday’s meeting of the Monetary Policy Committee, which could help keep the cost of borrowing down.
By Jamie Price