Could the Bank of England rate drop lower?

March 5, 2015 by Brendan O'Neill

Rates

https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpg Carney, governor of the Bank of England, said in a report recently that inflation may well dip into the negative over spring, before spending the rest of the year getting back to zero.

Experts in the mortgage field have advised people not to expect too much from the potential dip. However, Carney stresses that while it would probably be a short-term effect, it would have a positive hit on household purse strings.

The chief executive of the Association of Mortgage Intermediaries, Rob Sinclair, supported the advice of not expecting too much by saying:

“There is the risk of deflation being driven by an oil price dip that is unlikely to be permanent.”

His views were compounded by a spokesperson from the Council of Mortgage Lenders (CML) who added:

“There’s enough economic uncertainty to balance against people getting too excited because they have more money in their pocket.”

Carney also passed comments that the Bank would take whatever steps were necessary to return the rate of inflation to 2%, which sparked speculation that the Monetary Policy Committee could drop the current base rate even lower than its record low of 0.5%.

Working as a mortgage advisor in the financial services industry, you will need to undertake your CeMAP training and pass the end exam in order to conduct customer interviews, complete affordability assessments, and then compile your recommendations on the most suitable mortgage package for each individual customer based on their personal circumstances.