Saturday, January 20, 2007
Markets price in interest rates of 5.75% by June 2007
Traders bet on rate rises after strong Christmas sales period
Another Gabriel Rozenberg article which highlights gathering economic clouds. A bunch of so called experts are pricing in 5.75% interest rates by June 2007 because of the strength of Christmas 2006 sales. I'm taking a dim view of so called experts but I feel the mood of the media is swinging towards higher interests rates. How long before reports of repossessions?
Posted by talking rot @ 09:09 PM (514 views)
4 thoughts on “Markets price in interest rates of 5.75% by June 2007”
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paul says:
Reports of repossessions? TR, those were available in June LAST year.
headmelter says:
“The only dovish piece of news was a further sign that the housing market may be cooling. The British Bankers’ Association said that net mortgage advances had dropped to £5.8 billion in December, from £6.7 billion in November.”
I know people have asked this before but how much of this is MEWing and people positioning themselves with a new fixed rate?
Is this information available?
That aside bring on a 0.5% hike in Feb and be done with it.
bidin'matime says:
Headmelter – ‘net mortgage advances’ means new loans less repayments made, so remortgages for the same amounts drop out of the equation.
Whether the net advances are MEWing or purchases doesn’t make a lot of difference – it still means new money flowing into the system. Perhaps MEWing is perhaps worse, because it is more likely to be spent on the new car or a new suite, but maybe it’s as likely to be a foreign holiday or even a property abroad, neither of which add to domestic inflation. Not sure anyone has the info about how the money is spent, to work it all out.
talking rot says:
Whoops, Paul
You’re right of course. I meant to say “How long before reports of repossessions make the mainstream media THIS YEAR.”
Thanks
TR