Thursday, March 3, 2011
What sets our mortgage rates? Apparently, Chinese savers
Mervyn King: The Chinese savers recycle their money into the UK mortgage market. If rates go up, it's because they're not savings as much. Note: we need them to spend more (and not save as much) so that the world economy can rebalance. Hence: UK house prices are likely to fall. You heard it from the man here!