Friday, September 26, 2014
This 2.7% monthly rise is an eye watering 37% annualised
Booming London property driving UK house prices as capital's homeowners see Ã‚Â£12,279 gain in a MONTH
Now, this August rise is materially lower than the 3.3% rise recorded by Land Registry for July, which annualised out at 47%. However, this drags up the annual rise to 21.6%. This is for a month that normally sees declines. What have I been telling you folks. European quantitative easing has only just begun and European core bond rates are steeply falling into negative territory. Much of this cash is flowing into London, and London just bagged the world's first overseas Chinese bond issuance. Nationally, prices are yet to breach the 2008 peak, so this bull market has a long, long way to go. Brent oil just dropped below $95, and so inflation is plummeting into deflation and Carney's musing of a rate rise are just that. He cannot rise rates against deflation and a collapsing Eurozone.