Will BoE take measures to help first-time home buyers?

Posted under Advice by Michael

Some economists think that inflation could top 5 per cent before the end of 2008.The economy grew just 0.2 per cent in the second quarter.

The International Monetary Fund (IMF) once more has revised down its forecast for the UK’s economic growth for this and next year. It now expects growth of just 1.4 per cent this year and 1.1 per cent in 2009, although the government is still expecting the figures for both years to be 2 per cent or above.

Given the increasing inflationary pressures, the IMF stated there was hardly any scope for the Bank of England (BoE) to ease up borrowing costs at this time, in spite of calls for measures aimed at stimulating the British economy and help first-time home buyers. The chief economist at Global Insight, Howard Archer, stated: “It is not really inconceivable that rates could well be either raised or less likely cut.”

In their deliberations, the Bank’s Monetary Policy Committee members will be carrying the latest forecasts for growth and inflation to be released as part of the Bank’s quarterly inflation report.