Bank of England Drop Interest Rates to 5.5%

Dear Readers,

The Bank of England dropped interest rates yesterday to 5.5% which is possibly one of the most important decisions the MPC have made in a decade.

It is widely regarded that the UK economy and property market is on a knife edge following the summers credit crunch and the MPC's decisions over the next 6 to 12 months could decide whether the UK's property market sees a big fall or whether confidence returns back into the property market by gradually easing interest rates over the next 12 months.

Many of the UK's leading economists are predicting falls in property prices next year ranging from 10% to a flat property market. However, I believe that if interest rates slowly fall next year, I predict that at worst there will be marginal drops in some areas or stagnant growth.

Many economists are predicting interest rates to fall further next year in a bid to halt falling confidence in the property market and to make sure the economy remains buoyant.

I personally feel that 2008 could be the most significant year the UK has seen in over a decade for the future prosperity and well being of the UK property market and the economy. The Bank of England hold all the keys to make sure that the UK does not see a property slump or a struggling economy.

My own personal view is that interest rates will fall by a minimum of 0.5% next year which will hopefully mean that property prices will remain stagnant at worst, but I guess we will have to see!

Until next time, invest wisely.

Kind Regards

Grant Delmege

Zone 4 Property

http://www.zone4property.co.uk