Mortgage customers need to keep an eye out on the basic bank rate as the Monetary Policy Committee (MPC) is scheduled to meet later this week to make a decision.
An industry expert has predicted that the interest rate would continue at its present low level of 0.5 per cent.
Michael Baxter, editor of Investment and Business News, did not expect any major fluctuation in the rate even though latest findings reveal that the British economy witnessed growth at the rate of 1.1 per cent in the second quarter of this year.
The rise in the Gross Domestic Product in the second quarter was higher than the 0.3 per cent recorded in the previous quarter.
He believes that the trend will be influenced by fears that the country is heading towards double-dip recession. Moreover, businesses are expected to fair poorly in the third quarter as the full impact of global austerity measures become more evident.
Mr Baxter said: "We are entering slightly unknown territory and ... it is going to take six months to a year before the full impact of these austerity drives are felt."
The last meeting of the Bank of England's MPC saw the majority of votes being cast in favour of maintaining the interest rate at 0.5 per cent.
Only Andrew Sentance voted in favour of increasing the basic bank rate by 25 basis points, it was later revealed.
It was also decided that the bank's assets reserved for providing funds for buying assets should be maintained at £200 billion.
Recently, it was predicted by another industry expert that capped mortgage products could return to the market if interest rates underwent an increase.
Ben Wilkie, editor at What Mortgage, said: "They were a popular deal so they certainly will have a place in the market. I think that once people start to think that interest rates will go up, they will become more popular." |
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