Investment Property News - Bueno Investments Limited

Property investors with variable mortgages will not see their monthly repayments come down in the short-term after the Bank of England decided to keep interest rates on hold.

The Bank's nine-strong Monetary Policy Committee (MPC) opted to leave rates unchanged at 5.25% after implementing quarter-point reductions in February and December.

The decision, which was widely expected, comes as concerns grow over the rate of inflation.

Oil prices and food costs have continued to soar, while householders are finding their budgets are also being squeezed by the effect of rising utility bills following price hikes by energy firms.

Ian McCafferty, the CBI's chief economic adviser, said holding rates shows the Bank is determined not to compromise on inflation, but added that another cut will be needed "sooner rather than later".

"The MPC is well aware of the intensifying short-term inflationary pressure and needs to balance this against the weakening of the economy we are experiencing," he said.

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http://www.buenoinvestments.com/uk_property_investment.php (UK property)

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