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Housing market continues to be supported by low rates

09 Jul 2015

Interest rates were kept at 0.5% following yesterday's meeting of the Monetary Policy Committee (MPC) - a record low - where they have been since March 2009

With an economic backdrop of weak European demand, Chinese shares being heavily sold off and the oil price recently continuing its fall, the MPC are still some way from raising rates. Indeed, until wage increases accelerate markedly (they spiked up last month, prompting one MPC member to hint he was close to voting for a rate rise) over several months, then rates are likely to stay at their record low.

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