The Bank of England’s Monetary Policy Committee (MPC) is set to come together for their monthly meeting on Thursday. This meeting in particular is of interest due to the expectation that the long standing historically low interest rate of 0.5% could be cut. Such a decision by the committee would contrast the expectations that were strong last year of an increase in the rate within 2016. The standard base rate has gone unchanged since March of 2009.

The Bank is also expected to report a lower UK growth forecast by the largest margin on record. The latest inflation report will be published on Thursday as well.

Warnings of a possible recession, as well as drastic declines in the housing market and mortgage lending, were talked of prior to the EU referendum and increased in volume after the Brexit vote. However, more optimistic outlooks are emerging.

That doesn’t mean that there won’t be some difficult impacts for the UK economy, even if those are short lived.

By lowering the cost of borrowing it is hoped that the demand in the housing market will remain. The housing market is an important aspect of the UK economy and therefore it is essential that the progress made in the market not be lost.

Many reports are coming out more optimistic such as the one released by the Centre for Economics and Business Research (CEBR) which forecasted a slight downturn from expectations for the housing market for 2016, a possible decline in 2017, but thereafter a strong emerging market.

Homeowners are expected to continue showing strong demand for remortgages, and even more so should interest rates offered by lenders decline more than the already attractive deals available. It should be noted that lenders could remain cautious and rates should they decline may not remain cheap for long.

Perhaps the MPC minutes from Thursday’s meeting will be the most anticipated in some time. A majority vote by the 9 member committee will be required to increase QE or to change the standard base interest rate.