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Realistbear

E C B--i R Going Up

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http://www.fxstreet.com/nou/content/107460...rket&dia=452006

ECB confirms June rate increase
- Latest currency alerts
04-05-06. The ECB left interest rates unchanged at 2.50% at today’s meeting, but the testimony afterwards left no real doubt that rates will be increased in June to 2.75%.

Up up and awaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaay! :)

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The ECB left interest rates unchanged at 2.50% at today’s meeting, but the testimony afterwards left no real doubt that rates will be increased in June to 2.75%.

Up up and awaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaay!

Plus a quarter percent (maybe) is "up up and awaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaay!"?

FFS.

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Plus a quarter percent (maybe) is "up up and awaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaay!"?

FFS.

That .25% means the average IO BTL numpty will need to find an extra £500 per year per property.

Plus, more interest PAID to me!

Edited by tahoma

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Rate-rise expectations weigh on eurozone bonds

Thursday May 4, 02:35 PM

(Taken from: Yahoo! Finance)

Interest rates in the UK and eurozone were both held by the region’s central banks on Thursday, but government bonds took a tumble as expectations of future rate rises were heightened.

Jean-Claude Trichet, president of the European Central Bank, said it would exercise “strong vigilance” to head off any risks to price stability in his press conference after the bank announced that rates would be held at 2.5 per cent his month.

European government bond markets took Mr Trichet’s comments as a signal that eurozone rates could be lifted as early as next month and that further rises were likely later in the year.

Prices fell and yields rose on shorter dated bonds, which are most sensitive to interest rate expectations, and these led other maturities in a similar direction.

The yield on the two-year Schatz was 9.7 basis points higher at 3.433 per cent, while 10-year bund yields were 5.9bp higher at 4.049 per cent

Perhaps only a 1/4% in the first instance, Seamaster, but at least another one to follow shortly afterwards ... up, up and awaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaay indeed! :P

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Gah! How my saving could use .25% on the ol' interest rates.

a rise of .25 means a real rise of .5% when you consider than your money is working for you instead of costing you as a BTL would!

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Gah! How my saving could use .25% on the ol' interest rates.

a rise of .25 means a real rise of .5% when you consider than your money is working for you instead of costing you as a BTL would!

That 0.25% would at least put my ISA rate of interest back up to the 5% it was when I opened it ... before the buggers then dropped it a few months later!

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Plus a quarter percent (maybe) is "up up and awaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaay!"?

FFS.

IN percentage terms .25% is very large. As people have borrowed huge sums in relation to their incomes the seemingly small hikes will have a much larger impact than when houses were more affordable (i.e. 3 times income).

As the ECB is just getting started we may see as much as 50% up in rates over the next year or so as we are starting from a very low base at under 3%. The US is almost at 7% on their mortgage rates giving the ECB a long way to go in order to catch up.

The pain is just beginning I am afraid. It had to happen though as the cycle takes us through good times and bad and we have had a little too much "good times".

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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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