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Realistbear

R I C S Say Higher I R May Hit Property Demand

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http://today.reuters.co.uk/investing/finan...GLOBAL-RICS.XML

Higher rates may hit surging property demand-RICS

Thu Apr 20, 2006 3:51 PM BST

LONDON, April 20 (Reuters) - Corporate and
investor demand for property
is surging in many parts of the world but could start to level off later this year as
higher interest rates begin to bite
, a survey showed on Thursday.

IR hikes do appear to be the nemesis for inflated property markets in general. Time to sell investment properties to beat the rush to sell as IR begin to bite harder.

Edited by Realistbear

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Higher rates may hit surging property demand

In other news, large North American mammals discovered defecating in woodland and Pontiff declared member of the Church of Rome.

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In other news, large North American mammals discovered defecating in woodland and Pontiff declared member of the Church of Rome.

It's finally starting to sink in to RICS et al that 'the next rate cut' is along way off.

Inflation eases to slowest in year

The pound dipped and short sterling rate futures rallied after the news as investors speculated the data lessened the chances of a rate hike from 4.5 percent -- which markets had recently started pricing in.

But analysts said the data were unlikely to persuade policymakers to move interest rates in either direction as surging household bills and record oil prices would likely push inflation back up in the coming months.

"As far as the BoE is concerned it is a welcome relief," said Peter Dixon, economist at Commerzbank.

"But I don't think it shows we are in any need of a rate cut now. It really is a recipe for no change."

Edited by jp1

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20 April 2006

Economic View

UK rates going nowhere.

Economist: Dermot O'Leary

The Bank of England's run of inactivity on the interest rate front looks set to continue for some months to come. At this month's meeting, UK rates were left on hold at 4.5% for the eighth consecutive month. This time it was 7-1 in favour of no change, with Stephen Nickell remaining the sole dissenter (the fourth consecutive meeting that he has voted for a rate cut). Even last August's decision to cut rates by 25bps was on a knife-edge. We have to go all the way back to August 2004 to find a unanimous decision to shift rates. So what are the reasons for the static nature of UK rates? The housing market has played a big role in determining the direction of monetary policy over the past three years, both on the way down and now seemingly when the market is staging a recovery. At this month's meeting, the committee believed that the triple support of rising equity prices, a falling exchange rate and a recovery in house prices were likely to support UK demand growth going forward. The committee has previously mentioned that it was loath to stoke reacceleration in house price inflation at a time when GDP growth was already picking up. The Committee also agreed this month that although inflation expectations had picked up in recent surveys, there does not seem to be any sign of this feeding into wages just yet. With the lone dove (Nickell) set to step down after next month's meeting, it appears that the Bank is set to leave rates on hold at 4.5% for some time to come.

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Guest

So what are the reasons for the static nature of UK rates?

They don't like it up 'em!

:lol:

Seriously now, the British People have a Personal Debt = 105% of GDP whereas the Americans have a personal debt of 65% GDP, so they can have rises "To Hell With The Housing Market We Have the Mighty Dollar To Defend", whereas we have .....

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Seriously now, the British People have a Personal Debt = 105% of GDP whereas the Americans have a personal debt of 65% GDP, so they can have rises "To Hell With The Housing Market We Have the Mighty Dollar To Defend", whereas we have .....

... to finish your sentence .... no reason whatsoever to raise IRs. An iR rise cannot be justified, which ever way you look at it.

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In other news, large North American mammals discovered defecating in woodland and Pontiff declared member of the Church of Rome.

:lol::lol:

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Absolutely, big jugs.

We don't have low interest rates in the UK.

We NEED low interest rates in the UK.

Subtle but important semantic difference which will mightily upset MarkG if he reads this thread.

Battern down the hatches and prepare for INFLATION.

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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