Commenting on the Bank of England’s decision to keep interest rates at 0.5%,
Miles Gibson, Head of UK Research, CBRE, said: “Following the referendum result, the Bank of England had already made reassuring noises to the market so the MPC may have felt nothing more was required for now, especially given the stimulus effect of a devalued currency.
“It is likely that the Bank wants to wait for more hard data on how the economy is performing before taking action. From a commercial property perspective, if and when a base rate cut does come, it will not have any big impact on pricing, which is driven by long term rates, although pricing might be boosted by a confidence effect. With sterling priced assets still looking attractive to overseas investors, whose cost of capital is not driven by UK debt markets, London and the UK most definitely remain a strong investment opportunity.”