Base rate 'may hold till 2012'-Nationwide

Speaking at the Legal & General Mortgage Market Roadshow in Reading, Mark Saddleton, head of economic and market analysis at Nationwide, said while inflation is likely to be back at 2% in two years' time, the Bank of England is more concerned with growth than inflation. This means it is "entirely conceivable" the base rate will not increase in 2011. He said when the base rate does rise, the MPC will make sure this happens very slowly. However, Saddleton warned despite low interest rates, the industry must be cautious: "Housing is massively overleveraged. When interest rates rise, a lo...