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Bank of England MPC meeting November 3rd 2022 - what are your predictions and how are you preparing
in Mortgages & endowments
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As much as rates going up for a few years is not great, the consequences of not raising them would be worse.
"The Bank is due to begin quantitative tightening (QT) on Nov. 1, selling some of its 838 billion pounds stock of British government bonds acquired over more than a decade of crisis-fighting, from the global financial crisis to the coronavirus pandemic and its aftermath"
It should stabilise the current mortgage rates but it might do the opposite if BOE fail to sell given those bonds given the relatively low UK base rate and strong USD.
Now that the budget has been delayed to 17th November I just don't think the markets will be biting until they see what's in the red book.
Who'd a thunk it
However, no sensible person lays the blame fully at their doors. This has been coming for years .
The average US mortgage rate has just hit 7.12% and that's probably pricing in the Fed's next rate hike next week.
Does this pave the way for where UK rates may be heading?