Rate cut 'could boost French property interest'
The Bank of England's decision to slash interest rates to 1.5% yesterday (January 8th) could prompt increased activity in the French property market, it has been claimed.
French Property News reports that the cut, which reduces the interest rate to a record low, will create market activity in France by giving UK-based investors "increased buying power".
David Mbaziira, marketing manager of Currencies Direct, told the website that more British buyers may look to enter the French property market over the next few weeks.
He explained: "Those looking to sell their properties in the UK will have increased buying power from the rally seen in the pound.
"Vendors and agents particularly in France will seek to capitalise on this influx and, as an alleged European recession creeps ever nearer, prices should stabilise."
Interest rates are now at the lowest level in the 315-year history of the Bank of England, although leading economists have already predicted further cuts.
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