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5 July 2023 - When will Fed gain independence from inflation?
There was some good news and some bad for the Bank of England and the economy yesterday.
The average interest rate on a five-year fixed mortgage reached 6% as the home loan market continued to react to the prospect of the Bank adding further hikes to the base rate. This will reverberate throughout the entire housing market and the wider economy.
The good news came from J.P. Morgan, who published a report in which it exonerated the Bank from the blame for the increases that have taken place over the past eighteen months.
The U.S. Bank which has its European headquarters in the City, argued it had “little or no choice” but to continually raise interest rates since a failure to do so would have led to a deeper downturn, even though it believes that the country faces a mild recession in the Autumn/Winter.
It is hard to blame the Bank of England for “simply doing its job,” the report went on to say, particularly since neither politicians nor analysts have not offered any viable alternatives.
Beyond Currency Market Commentary:
Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.
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By CurrencyTransfer
5
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There was some good news and some bad for the Bank of England and the economy yesterday.
The average interest rate on a five-year fixed mortgage reached 6% as the home loan market continued to react to the prospect of the Bank adding further hikes to the base rate. This will reverberate throughout the entire housing market and the wider economy.
The good news came from J.P. Morgan, who published a report in which it exonerated the Bank from the blame for the increases that have taken place over the past eighteen months.
The U.S. Bank which has its European headquarters in the City, argued it had “little or no choice” but to continually raise interest rates since a failure to do so would have led to a deeper downturn, even though it believes that the country faces a mild recession in the Autumn/Winter.
It is hard to blame the Bank of England for “simply doing its job,” the report went on to say, particularly since neither politicians nor analysts have not offered any viable alternatives.
Beyond Currency Market Commentary:
Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.