The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
...will stay high and could rise again, says Bank.
Interest rates are likely to stay high for longer and could rise again despite new forecasts that the UK economy will now see zero growth until 2025.
The Bank of England warning came as it left rates unchanged for a second consecutive month at 5.25%, their highest level for 15 years.
The Bank also said it expects a sharp slowdown in the pace of price rises in the coming months.
Governor Andrew Bailey said it did not mean interest rates would fall soon.
"It's much too early to be thinking about rate cuts," said Mr Bailey.
Up until September, the Bank had raised rates 14 times in a row to tame soaring inflation which has been squeezing households.
It has led to increases in mortgage payments but also higher savings rates.
While inflation is easing, the Bank said interest rates are likely to "need to be restrictive for an extended period of time".
And Mr Bailey said: "We'll be watching closely to see if further rate increases are needed."
Inflation, which measures the pace at which prices are rising, eased to 6.7% in the year to September.
The Bank expects a sharp slowdown to 4.8% in October and says it will fall further next year, as energy and food price rises ease.
The drop means Prime Minister Rishi Sunak is likely to fulfil a pledge to halve inflation by the end of this year to around 5%.
However, his target to get the economy growing by the end of the year is now in doubt, after the Bank lowered its growth forecasts.
While it is not predicting recession, it expects zero growth from now, across the whole of next year - when there is likely to be a general election - and into 2025.
"UK economic growth is slowing," the Bank said in its inflation report.
The forecast also shows that while inflation will come down, it will remain above the Bank's target throughout next year, at around 3%.
Chancellor Jeremy Hunt promised measures to get Britain growing again in his Autumn Statement later this month.
"The Autumn Statement will set out how we will boost economic growth by unlocking private investment, getting more Brits back to work, and delivering a more productive British state."
https://www.bbc.co.uk/news/business-67286913
DYOR
J-M, Don't worry it wont, lloy spikes are better known as morning wood...
DYOR
J-M ".5% spike "
Jeez, fella you're easily pleased..🤣😂
DYOR
Well if the Tory's lose the next election then the Covid corruption commissioner’ would seek to recoup lost billions, says Labour.
DYOR
P1 I agree with what you are saying. although I do think prices need to fall further, as well as rates, tbh.
DYOR
UK market 'extremely weak' as prices drop by £35,000 on average...
House prices have plummeted by an average of £35,000 in a huge blow to homeowners desperately scrambling to sell their properties.
House prices rose by 0.9 percent on average month-on-month in October, according to Nationwide Building Society, but they were 3.3 percent lower compared to the same month last year.
The average house price in the UK for October was £259,423, reflecting a whopping decrease of £34,577 from December 2022, when the average stood at £294,000.
Robert Gardner, Nationwide's chief economist, said that despite the month-on-month rise in prices, housing market activity "has remained extremely weak, with just 43,300 mortgages approved for house purchase in September, around 30 percent below the monthly average prevailing in 2019".
Other analysts have described the "unexpected uplift" as a "glimmer of hope" for homeowners that the worst of the downturn may be over.
Alice Haine, personal finance analyst at Bestinvest, commented: "Britain's house prices rose 0.9 percent on the month in October, offering a glimmer of hope to homeowners that the worst of the downturn may be over. The unexpected uplift led to an improvement in the annual rate of house price growth, which dropped by -3.3 percent from a decline of -5.3 percent in September."
But while this may deliver some relief, Ms Haine noted: "The uptick reflects the low stock of properties up for sale as high borrowing costs and uncertain conditions caused many sellers to delay putting their home up for sale."
In the last month, the Bank of England's Money and Credit Report indicated a significant decrease in mortgage approvals, dropping from 45,400 in August to 43,300, marking their lowest level since January.
read more;
https://www.msn.com/en-gb/money/other/house-price-crash-uk-market-extremely-weak-as-prices-drop-by-35-000-on-average/ar-AA1jchyx?ocid=msedgntp&cvid=c5fc07df34974124ae838eeedcbfce83&ei=12
DYOR
It's not something your friends are likely to be talking about down the pub but in the City there's something fund managers and investors are increasingly worried about.
Bond markets.
They are falling and have been for some time.
It is a flashing warning sign about the state of the UK and US economies and may affect the costs of our loans and mortgages.
So how worried should we be?
https://www.bbc.co.uk/news/business-67262339
DYOR
Reports say firm is filing for bankruptcy...
https://www.bbc.co.uk/news/business-67281739
DYOR
LTI, even post buybacks the market does not value the SP to pre pandemic levels...
As i stated months ago, SP is heading for a long painful slow decline...
DYOR
LTI get over it, stop bleating like a petulant child...
DYOR
Brixton put it across well.. Buybacks are a refund on faulty goods....
DYOR
LTI if buybacjs had been deemed positive by the market then the market would put a higher value on the SP...
Ger over yourself...
DYOR
LTI "For at least the hundredth time, and let it sink in.
THE MARKET DETERMINES THE VALUE OF LLOYDS BANKING GROUP ."
So buybacks are pointless... 😜
DYOR
I see one of tge two headed monster is out tonight, well it's Halloween... Probably a lth with Freddy Krueger like claw marks in his under crackers...
😂
D...
Bank takes $500 million hit on Chinese real estate and warns of risk of ‘further deterioration.
https://www.cnn.com/2023/10/30/business/hsbc-q3-results-earnings-report-intl-hnk/index.html!~OMSelectionMarkerStart~!!~OMSelectionMarkerEnd~
DYOR
Llbot..."He probably wrote it."
😂🤣😂🤣
D....
Mick-b, no worries, but they'll cometh for you and burn your village so now run...!
A friend...
😂🤣
LTI, Yawn.
D.....
LTI I posted an article with the title "Firms going BUST on track for worst year since 2009 "
then I pointed out to skier1 that NOT all companies go bankrupt....but do close.
You do get excited...lol
DYOR