Steady hand needed over any changes made to the base rate | David Alexander

In his latest article for The Scotsman, David Alexander comments in response to the recent announcement by the Bank of England to increase base rates once again.

“While there is little doubt that interest rates needed to rise to slow down the surging property market which has occurred since lockdown the danger with so many increases over a short period is that you suppress demand by too much and cause a serious reversal in prices.”

David continues, “What we need is a steady hand on interest rates which can ease inflationary pressures without depressing the market. A period of relatively stable prices would be useful for the coming year with some relaxation in six months and into next year to encourage buyers to remain in the market without boosting it beyond affordability.”