JP Morgan AM: The market expects UK interest rates to stay high for a long time
JP Morgan AM: The market expects UK interest rates to stay high for a long time
With UK core inflation the highest it has been since 1992 at 7.1% year on year, markets are pricing in that interest rates will have to stay high for quite some time.
However, about 2.4 million households will see their fixed rate mortgage deal expire between now and the end of 2024. So much of the monetary policy tightening that has already been delivered is yet to be felt by households, with the likely resulting squeeze on discretionary spending still to come. With this in mind, it may be that UK interest rates end up lower than the market currently expects by the end of 2024. If so, UK gilts could offer some upside for investors.
Share this post!
Related posts
-
Read more about "abrdn: BoE interest rate outlook cloudier from now on"abrdn: BoE interest rate outlook cloudier from now on
-
Read more about "Saxo Bank: Bank of England zal na renteverlaging voorzichtige toon aanslaan"Saxo Bank: Bank of England zal na renteverlaging voorzichtige toon aanslaan
-
Read more about "RAW Capital Partners: BoE to hold rates"RAW Capital Partners: BoE to hold rates
-
Read more about "AXA IM: Bank of England will most likely cut rates in November"
AXA IM: Bank of England will most likely cut rates in November
-
Read more about "PIMCO: BoE decision will be like a coin toss"PIMCO: BoE decision will be like a coin toss
-
Read more about "Candriam: Finely balanced’ BoE decision today, but expect cutting cycle starting in August"
Candriam: Finely balanced’ BoE decision today, but expect cutting cycle starting in August
-
Read more about "DWS: The time is not yet ripe for a cut"
DWS: The time is not yet ripe for a cut
-
Read more about "PGIM Fixed Income: Renteverlaging BoE ligt niet buiten de mogelijkheden"PGIM Fixed Income: Renteverlaging BoE ligt niet buiten de mogelijkheden
-
Read more about "DWS: Bank of England verlaagt rente pas in juni"
DWS: Bank of England verlaagt rente pas in juni
-
Read more about "abrdn: BoE a few months away from interest rate cuts"
abrdn: BoE a few months away from interest rate cuts