City & Business: Relief for mortgagees
Sunday 02 November 1997
A minority, led by HSBC, Deutsche Morgan Grenfell, and Lehman forecast a rise to 7.25 per cent. Their argument is that the central bank will move to damp down the inflationary effects of strong GDP growth and consumer spending, along with a tighter labour market.
But the majority believes there are more powerful counter-arguments. To wit, 1) the housing market has probably peaked, 2) the inflationary impact of windfall receipts from the Halifax and other ex-building societies has been muted, 3) an interest-rate hike would push up the pound, which would hurt already smarting British exporters, and 4) last week's gyrations in the stock market were deflationary for the global economy.
The real issue facing home-owners is what is going to happen to interest rates longer term.
UBS economist Andrew Roberts says rates are due to peak later this year or early next - not above 8 per cent - and then head down. To those who think differently he points out that the long-term trend in interest rates is unequivocably down. In 1990 interest rates peaked at 15 per cent and in 1980 at 17 per cent.
- 1 iOS 8 apps and features: eight iPhone settings you need to look at after you install the update
- 2 Kim Kardashian 'nude photos' leaked on 4chan weeks after Jennifer Lawrence scandal
- 3 'F*ck it, I quit': TV reporter Charlo Greene quits live on air in spectacular fashion
- 4 Scotland could still declare independence – even without referendum, says Alex Salmond
- 5 Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Rihanna 'nude photos' claims emerge on 4Chan as hacking scandal continues
Kim Kardashian 'nude photos' leaked on 4chan weeks after Jennifer Lawrence scandal
Khorasan: Muhsin al-Fadhli - the man leading a terror group more feared by US officials than Isis
'F*ck it, I quit': TV reporter Charlo Greene quits live on air in spectacular fashion
Alicia Keys leaks nude photo 'to create a kinder and more peaceful world'
Scotland could still declare independence – even without referendum, says Alex Salmond
Scottish referendum results: Cross-party consensus collapses amid Tory-Labour spat on the 'English question'
Hilary Mantel 'should be investigated by police' over Margaret Thatcher assassination story, says Lord Bell
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Plebgate MP Andrew Mitchell called officer a 'little s**t', claim court documents 'exposing ex-Chief Whip's 'record of abusing police'
Archbishop of Canterbury admits doubts about existence of God
iJobs Money & Business
£20000 - £25000 per annum + OTE £40,000: SThree: SThree are a global FTSE 250 ...
£20000 - £25000 per annum + OTE £40000: SThree: As a Recruitment Consultant, y...
£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...
Up to £80000: Saxton Leigh: My client, a large commodities broker, is looking ...