MPC to follow Fed's lead - AMI

The AMI says the housing market is slowing down but expects lower transactions will be more likely than sharply falling house prices. It adds it expects re-mortgaging to hold up better, even if borrowers do not seek to withdraw equity from their homes to the same degree. In addition, the AMI says falling interest rates will boost confidence in the second half of the year. Richard Farr, AMI director, says: “With continuing volatility in the financial markets and steep rate cuts by the Fed the UK will also look at reducing rates. “However, as the Bank of England recognise, it is a difficu...