10th May 2010: PPR - Interest rates remain cheapest ever

“Today’s decision to stick with the cheapest ever base interest rates was widely expected despite creeping inflation worries. Homeowners and borrowers are in desperate need of financial stability – something they cannot be confident of receiving from the government as the talks to resolve the hung parliament election result drag on.

 

“However, nobody believes these interest rates can stay in place indefinitely. When combined with the inevitable public spending cuts and tax increases the new government will have to implement to stave off economic catastrophe “a la Greece” and already high unemployment it seems home repossessions will inevitably escalate towards the end of this year again.”