Interest rate cut could benefit French property market

The Bank of England's decision to reduce interest rates to 2% is expected to have a positive impact on the property market in France.

Property agents in the country have seen prices fall recently, but Rajesh Agrawal of currency specialist RationalFX said a boost to the UK economy could have a knock-on effect in France.

He told French Property News: "With France being so accessible nowadays it is one area that could really benefit from the UK turnaround.

"Northern France in particular could reap the benefits of the UK market picking up and exchange rate negatives could easily be outweighed by the projected jump in prices."

Karen Tait, editor of French Property News, said investors should not be discouraged by the current economic situation and urged buyers to take advantage of the "real property bargains" currently available in France.

The Bank's latest cut, which follows last month's reduction of 1.5%, has brought interest rates in Britain to their lowest level since 1951.

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