Tuesday, Mar 06, 2007
Last weeks market turbulence could lead to further IR rises
Independent: Hamish McRae: Could the day of the correction persuade the Bank to keep its powder dry on rates?
Hamish Mcrae looks at last week's turmoil in the global equity markets, and considers what effect it will have on the UK economy. he believes there will be another interest rate rise before long, and the peak could be as high as 6%. The main differences between the UK and US economies, he identifies is the condition of the property markets. Despite both economies going through periods of growth financed by borrowing, when the US raised house prices, it effected the market.
Posted by jellycaster @ 09:01 AM (165 views) Add Comment
2 Comments
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1. Davros said...
"I still think it possible that the peak in rates this cycle will be 6 per cent."
It's funny, nohpc and David told me last week that rates were going to drop to 5% again.
Now I don't know who to believe?
2. Lvmreader said...
6% peak. Keep dreaming. It went up to 14% last time round. And that was without the mountains of debt.
We are talking 10% - 12% within 18 months.
"In defence of currency............."