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Message: <blockquote data-quote="How bad boy" data-source="post: 7020099" data-attributes="member: 3028">Looking like the Bank of England is going to hike rates again, but really up to only 1%:[URL unfurl="true"]https://www.standard.co.uk/business/bank-of-england-interest-rates-labour-market-inflation-wages-may-mpc-b993925.html[/URL]I really think the ECB are going to have to hike rates ahead of when they thought. Here's the minutes from their policy discussions for last month:[URL unfurl="true"]https://www.ecb.europa.eu/press/pr/date/2022/html/ecb.mp220310~2d19f8ba60.en.html[/URL]Their reasoning for keeping rates low was:"Any adjustments to the key ECB interest rates will take place some time after the end of the Governing Council’s net purchases under the APP and will be gradual. The path for the key ECB interest rates will continue to be determined by the Governing Council’s forward guidance and by its strategic commitment to stabilise inflation at 2% over the medium term. Accordingly, the Governing Council expects the key ECB interest rates to remain at their present levels until it sees inflation reaching 2% well ahead of the end of its projection horizon and durably for the rest of the projection horizon, and it judges that realised progress in underlying inflation is sufficiently advanced to be consistent with inflation stabilising at 2% over the medium term."Think with inflation in the Eurozone at 7.5%, it's hard not to reason that there's a significant risk of overshooting that target of 2%...They're meeting tomorrow, I'd be surprised if they don't announce a rate increase. Looking at the Irish bank rates, they've already priced in the increase. There were banks in the UK offering below 1% fixed rate mortgages. Some of the rates on offer last summer were nuts, Natest were offering a 5 year fixed rate mortgage for 1.17%. The BoE rate will almost certainly be 1% next month.I really don't see how this can't result in a reduction in house prices in the UK. As for Ireland, let's see what comes out of the ECB tomorrow, but again, if you can't borrow shittons of money for cheap, then you can't pay extortionate prices for houses...</blockquote>

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