Sunday, July 22, 2007
First-time buyers and borrowers will be hit by increases as early as next month, experts predict
Will they have the balls? Doves on the MPC probably won't want to be seen panicking, but will they be disciplined by an increasingly vocal and hawkish King? Considering that the consensus seems to be dynamic nowadays, its hard to predict. On the one hand, the doves, who, even when consistently voting for a hold, accept higher IR's when they rise. The Hawks are generally looking up as far as their tolerances allow them. This writer can tolerate 0.75 above current levels, whilst people like Hamish McRae (Independent also) have a tolerance of about 1.5%. He was asking for 6%+ last autumn and has been quoting 7%+ recently. Tolerances aside, nobody is being certain at when and where the peak will be, which makes the storm clouds ever ominious & business planning ever tough, incuding for BTL'rs.